FxWirePro: Nikkei trades quietly ahead of US jobs data, good to buy on dips

Nikkei is trading flat for the past 3 trading days. The index gained nearly 2% after US-China has agreed to restart trade talks has increased hopes of a deal. With US markets closed yesterday on account of independence, trading remains subdued. Investors await US Non-Farm Payroll data which is to be released today for further direction. The index hits an intraday high of 21733 and is currently trading around 21701.

US Market- The Wall Street futures are trading flat with Dow Jones and S&P500 closed at 26974 (0.10%) and 2998 (0.02%) higher.

Japanese Yen- USDJPY is consolidating after declining more than 100 pips from a high of 108.83. The near term support is at 107.50 and any break below targets 107/106.80. The pair is still in bearish mode and any reversal can be seen only above 109. It is currently trading around 107.87.

Shanghai composite- Shanghai is trading flat after hitting high of 3048. Short term trend is bullish as long as support 2945 holds. It is currently trading around 3009.

Technically, the index is facing strong support around 21498 (300- day EMA) and any violation below will drag the Nikkei till 21243 ( 200- day MA)/21000.

On the higher side, near term resistance is around 22000 and any violation below this level will take the index till 22250/22480.

It is good to buy on dips around 21500 with SL around 21250 for the TP of 22000/22250.