FxWirePro: Nikkei trades lower on strong yen, good to stay away

Major support - 20700

Nikkei trades slightly lower on strong yen. The demand for Safe-haven assets has increased on account of geopolitical tension between the US and Iran. Markets are eagerly waiting for US President Trump and the Chinese President Xi Jinping meeting in the G20 summit. The index hits an intraday low of 21106 and is currently trading around 21106.

US Market- The Wall Street has closed slightly mixed after hitting an all-time high with Dow Jones and S&P500 closed at 26727 (0.03%) and 2945 (0.17%) lower.

Japanese Yen- USDJPY continues to trade lower and has broken major support 107. This confirms bearish continuation and a dip till 106 likely. It is currently trading around 106.93.

Shanghai composite- Shanghai is struggling to hold above 3000 levels and started to decline more than 2% from high of 3012. Any major movement only after Trump and Xi Jinping meeting.

Technically, the index is facing strong support around 21038 (20- day MA) and any violation below will drag the Nikkei till 20675/20465/20200.

On the higher side, near term resistance is around 21257 and any violation below this level will take the index till 21589/22000.

It is good to stay away from the market till G20 meeting