FxWirePro: Nikkei trades lower on US-China tension, good to sell on rallies

Asian markets is showing major weakness following footsteps of Wall Street. US markets has lost sharply on Friday with Dow Jones 24389 (2.24% lower), S&P500 2633 (2.33% lower) following slight weaker than expected US Non Farm Payroll.The US 10 year yield also trading weak and US 2 year yield is trading above US 5 year. US futures continues to trade lower on escalating tensions between Washington and Beijing after China’s foreign minister summoned US ambassador. Shanghai is trading lower and declined more than 3  from high of 2666.It is currently trading around 2584 (0.91% higher).Nikkei has lost more than 7% form high of 22784 and is currently trading around 21213 (0.02% higher).

USDJPY is consolidating after hitting low of 112.23.It is currently trading around 112.34.The near term major support is around 112 and any break below targets 111.37.

On the lower side, near term support is around 2 1000 and any break below targets 20795.

The near term resistance is at 21489 (23.6% fib) and any break above targets 21669/21999 (10- day MA)

It is good to sell on rallies around 21600-650 with SL around 21800 for the TP of 21000.