FxWirePro: Nikkei Weekly Outlook

Major support - 20700

Asian markets are trading lower with Nikkei has lost more than 250 points from high of 21830. US-China trade talks to resume by this week in Shanghai on Tuesday. Markets eye US Fed monetary policy on Wednesday for further direction. It hits an intraday low of 21519 and is currently trading around 21607.

US Market- The Wall Street has closed marginally higher with Dow Jones and S&P500 at 27192 (0.74%) and 3025.9 (0.74%).

Japanese Yen- USDJPY is consolidating after hitting a high of 108.82 and any break above 109 confirms minor trend reversal. It is currently trading around 108.64.

Shanghai composite- Shanghai is facing major intraday resistance around 2950 (300- H EMA) and any break above targets 2967/3000. It is currently trading around 2948.

Technically Nikkei facing strong resistance around 21800 and any major jump can be seen only if it closes above this level. Any close above targets 22000/22280.

On the flip side, near term support is around 21500 and any violation below this level will take the index till 21x 315/21000.

It is good to buy on dips around 21500 with SL around 21300 for the TP of 22000.