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FxWirePro: Nikkei trades lower on strong yen, good to sell on rallies

Asian markets are trading weak especially Nikkei weak following footsteps of US markets. The stronger yen and problem in Turkey has dragged global markets. US President Donald Trump said that US is planning to double metal tariffs against Turkey. The Turkish lira slumped more than 20% after the announcement.The junp in yen has dragged export stocks lower especially Toyota motor and Canon lost 1.67% and 2.17% respectively.  US markets closed slightly lower with Dow Jones 25313 (0.77% lower) and S&P500 2833 (0.71% lower).Shanghai has started to decline after showing a minor recovery till 2806. the index lost more than 1.5% and is currently trading around 2750.  USD/JPY which is the main indicator of geo political tension is trading slightly lower on rising trade war tension . US futures is trading flat with Dow Jones at 25210 (0.51% lower) and S&P500 2822 (0.43% lower). Nikkei is currently trading around 21887 1.10% lower.
 

USD/JPY has lost more than 200 pips after hitting high of 112.15 and is currently trading around 110.17 (0.69% lower).
 

On the lower side, index major support is around 21750 and any break below will drag the index down till 21460/21200.
 

The near term resistance is around 22280 and any convincing break above will take the index to next level till 22438 (10- day MA)/22800/23040.


It is good to sell on rallies around 22200-250 with SL at 22435 for the TP of 21760/21500.

 

 

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