FxWirePro: Nikkei Daily Outlook

FxWirePro: Nikkei Daily Outlook

Nikkei is trading slightly lower after weaker than expected Chinese GDP growth. Chinese GDP came at 6.2% in the second quarter lowest in 27 years and it hurts investor sentiment. Markets eye US retail sales and corporate earnings for further direction. The index hits high of 21677 and is currently trading around 21647.

US 10 year bond yield has shown a minor decline after more than 11% jump from the low of 1.937%. It is currently trading at  2.083%.

US Market- The Wall Street has closed higher and hits a fresh all-time high with Dow Jones and S&P500 closed at 27332 (0.90%) and 2999 (0.46%) higher. 

Japanese Yen- USDJPY is trading weak for 2nd consecutive days and lost more than 100 pips. The near term support is at 107.75 and any break below targets 107.50/106.80. The pair is still in bearish mode and any reversal can be seen only above 109. It is currently trading around 108.02.

Shanghai composite- Shanghai has shown a minor jump of more than 2% from low of 2886. It is trading slightly above 300-day EMA and any break above 21-day MA at 2967 confirms further bullishness. It is currently trading around 2935.

Technically, the index is facing strong support around 2150 (300- day EMA) and any violation below will drag the Nikkei till 21244 ( 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 21505 with SL around 21250 for the TP of 22000/22250.