FxwirePro: Nikkei trades weak on yen recovery and renewed geo political tension, good to sell on rallies

• Asian markets are trading extremely weak of more than 1% on renewed geo political tensions between US -China.US President Trump ordered his commerce department to consider probe into fresh tariffs on foreign vehicles. “Core industries such as automobiles and automotive parts are critical to our strength as a nation,” Trump said in a statement late Wednesday. Dow Jones recovered almost more than 200 points from low after Fed minutes meeting. US futures is trading marginally negative with Dow Jones at 24807 (0.18% lower) and S&P500 2725 (0.15% lower). It is currently trading around 22420 0.88% lower.
   
• USD/JPY has declined more than 70 pips for the intraday on account of increasing geopolitical tensions. The pair is trading well below 200- day MA Any further weakness can be seen if it breaks below 110 (resistance turned into support). It is currently trading around 110.50.    
   
• On the lower side, index major support is around 22270 (55- day EMA) and any break below will drag the index down till 22000 (38.2% fib)/21697 (Apr 13th low).
   
• The near term resistance is around 22650 (20- day MA) and any break above will take the index to next level till 23000/23200.

It is good to sell on rallies around 22850-900 with SL at 23050 for the TP of 22590/22300.