Nikkei is trading higher for 2nd consecutive day following footsteps of Wall Street.US markets is trading higher and jumped more than 3.5% in three days on rate cut hopes and slight optimism on US-Mexico trade deal. US has added 27000 private sector jobs in May compared to forecast of 185k vs 271000 jobs in Apr. US 10 year yield jumped more than 4% and spread between 3 month and 10 year slightly reduced from 25 basis point to 22 basis point. The index is consolidating after hitting high of 20878 and is currently trading around 20828.
On the higher side, near term resistance is around 20898 (200-H MA) and any violation above will take the index to next level till 21287/21480.
The near term support is around 20680 and any convincing break below will drag the index down till 20458/20288.
It is good to buy on dips around 20600-625 with SL around 20350 for the TP of 21000/21280.
