FxWirePro: Nikkei trades steady after huge sell-off,good to sell on rallies

Asian markets are trading weak but recovered from today’s low on slight jump in yen. US markets closed more than 2.5% with Dow Jones at 22686 (2.83% lower) and S&P500 at 2447 (2.48% lower).The yen recovered more than 350 pips after hitting 104.65 lowest level since Mar 2018. US manufacturing PMI came at 53.8 in December down from 55.3 in Nov which has increased growth concerns in US. Shanghai is trading higher and is currently trading around 2509 (1.8% higher). Nikkei is trading slightly higher and currently trading around 19490 (0.22% higher).

USDJPY has shown a massive recovery of more than 350 pips and is trading slightly above 300- W EMA. The pair hits low of 104.74 and is trading around 108.33.

On the lower side, near term support is around 19000 and any break below targets 18600/18000.

The near term resistance is at 19620 (5- day MA) and any break above targets 19950 (23.6% fib)/20500.

It is good to sell on rallies around 20000 with SL around 20525 for the TP of 19000.