FxWirePro: Nikkei hits 4-1/2-month low on trade worries and strong yen, good to sell on rallies

Nikkei trades lower and hits 4-1/2 month low on trade war between US and other countries. US President Trump said that due to increase of illegal immigrants from US planning to impose tariff on Mexico. USDJPY is trading lower and lost nearly 150 pips. It hits 5-month low and currently trading around 108.15.US 10 year bond yield declined sharply and hits lowest level since since Sep 2017 and spread between US 3 month and 10 year yield widened to 20 basis point highest level since Mar 2019. The index hits low of 20291 and is currently trading around 20363.

On the higher side, near term resistance is around 20561 and any violation above will take the index to next level till 20800/21000.

The near term support is around 20185 and any convincing break below will drag the index down till 20000/19650.

It is good to sell on rallies 20525-550 with SL around 20800 for the TP of 20000/19650.