- Nikkei has shown a good recovery after hitting low of 20925 at the time of writing. The index jumped almost 385 points (1.84% ) from the low. The index recovery was slightly supported by minor weakness in yen. The yen was trading higher yesterday on new US – China trade worries China imposed 25% tariff for 125 products for U.S especially pork and wine. Nikkei jumped till 21311 and is currently trading around 21266.09% higher.
- US dollar index has once again declined after hitting high of 90.15 yesterday.US ISM manufacturing data came at slightly weaker than expected. It came at 59.3 last month compared to 60.8 for the month of Feb.
- USD/JPY has shown a 34 pips jump from the low of 105.65. It is currently trading around 105.94. The pair should break above 106 (55- day EMA) for minor jump till 106.70/107.
- On the lower side, index major support is around 20800 (61.8% fibo) and any break below will drag the index down till 20335/2000.
- The near term resistance is around 21400 (200- day MA) and any break above will take the index to next level till 21820/22100/22500.
It is good to sell on rallies around 21350-400 with SL at 21800 for the TP of 20850/20340.
