FxWirePro: Nikkei pares yesterday’s gain due to weak U.S market, good to buy on dips

• Asian markets pared most of its gains from yesterday high as trade worries woes investor sentiment.US market has closed slightly weak on trade worries and slightly weak economic data. The Philadelphia fed reserve said that the business condition index fell to 19.9 in Jun lowest level since Nov 2016. US markets has closed weak yesterday with Dow Jones 24461 (0.80% lower) and S&P 500(2749 0.63% lower).Nikkei dropped slightly today’s morning trade after Daimler cuts its profit forecasts citing tariff concerns and Japan’s auto sector tumbled more than 2%.USDJPY which is the main indicator of geo political tension declined more than 90 pips yesterday and this shows that US China trade worries is still on.Nikkei has declined almost 300 points from yesterday’s high. US futures is trading marginally higher with Dow Jones at 24543 (0.35% higher) and S&P500 2754 (0.29% higher). Nikkei is currently trading around 22523 0.89% higher.
   
• USD/JPY has shown a good decline of 90 pips on account of renewed trade war worries. The pair hits intraday low of 109.83 and is currently trading around 109.96.
   
• On the lower side, index major support is around 22590 (20- day MA) any break below will drag the index down till 22450 (55- day EMA)/22200 (200- day MA).
   
• The near term resistance is around 22800 and any convincing break above will take the index to next level till 23050/23200.

It is good to buy on dips around 22500-550 with SL at 22300 for the TP of 23050.