FxWirePro: Nikkei recovers sharply as Shanghai trades higher, good to buy on dips
Asian markets are trading higher with Chinese market performing better than other markets. Chinese yuan is continuing its weakness with on-shore yuan at 6.8088 and off-shore yuna at 6.8250 lowest level more than a year.S…
Asian markets are trading higher with Chinese market performing better than other markets. Chinese yuan is continuing its weakness with on-shore yuan at 6.8088 and off-shore yuna at 6.8250 lowest level more than a year.Shanghai is trading higher more than 1.5% at 2907. US market has closed flat with Dow Jones at 25044 (0.06% lower) and S&P500 2806 (0.18% higher). USD/JPY which is the main indicator of geo political tension has shown a minor recovery from low of 110.75. But overall trend is weak only. US futures is trading higher with Dow Jones at 25127 (0.30% higher) and S&P500 2815 (0.25% higher). Nikkei is currently trading around 22510 0.19% lower.
USD/JPY has shown a minor recovery till 111.35 after hitting low of 110.75. It is currently trading around 111.32.
On the lower side, index major support is around 22370 (55- day EMA) and any break below will drag the index down till 22195/22000/21750/21460.
The near term resistance is around 22425 (50- day MA) and any convincing break above will take the index to next level till 22800/23050.
It is good to buy on dips around 22300-350 with SL at 22190 for the TP of 22780/23040.
