FxWirePro: Nikkei recovers slightly on easing Italian political uncertainty, good to sell on rallies
Asian markets have recovered slightly on account of slightly easing Italy political uncertainty. USD/JPY is trading marginally stronger after hitting low of 108.11 yesterday.Italy President blocked the formation of euro …
Asian markets have recovered slightly on account of slightly easing Italy political uncertainty. USD/JPY is trading marginally stronger after hitting low of 108.11 yesterday.Italy President blocked the formation of euro skeptic governing coalition over the weekend. After that Italian 2- year bond yield was up 158 basis point and hits high of 2.83% highest level till 2012 and 10 year yield rose 76 basis point to 3.44% highest since 4 years. Italy Credit default swaps jumped by 59% to 262 bps , the highest level since Oct 2013.But Italian President searched for solutions to prevent from fresh elections. Euro and Italian bond has shown a slight recovery after the news.US markets are closed more than 1% higher yesterday with Dow Jones 24667 (1.26% higher) and S&P500 2724 (1.27% higher). US futures is trading flat with Dow Jones at 24650 (0.03% higher) and S&P500 2721 (0.03% lower).Nikkei is currently trading around 22015 0.14% lower.
USD/JPY has declined more than 100 pips and hits low of 108.11. The pair has taken support near 100- day MA.Any further weakness can be seen if it breaks below 108. It is currently trading around 108.65.
On the lower side, index major support is around 21880 (200- day MA) and any break below will drag the index down till 21697 (Apr 13th low).
The near term resistance is around 22270 (55- day EMA) and any break above will take the index to next level till 22340/22560 (20- day MA)/22800.
It is good to sell on rallies around 22270-300 with SL at 22510 for the TP of 21880/21750.
