- Asian markets are trading mixed mostly on the higher side after a minor recovery in US markets . US and China trade war is the major event which is dragging global equity markets. Chinese market has shown good come back after more than 20% selling from its peak. Shanghai comosite index has recovered more than 1% and is curretly trading around 2815. US markets closed slightly higher with Dow Jones 24216 (0.41% higher) and S&P500 2716 (0.62% higher)..USDJPY which is the main indicator of geo political tension has shown a good recovery of 150 pips from low of 109.36 and this shows that investors slightly ignoring trade war tension.US futures is trading marginally higher with Dow Jones at 24347 (0.33% higher) and S&P500 2723 (0.10% higher). Nikkei is currently trading around 22260 0.36% lower.
- USD/JPY has shown a good recovery of almost 100 pips. But upside is capped due to trade worries. The pair hits high of 110.49 and is currently trading around 110.26.
- On the lower side, index major support is around 22200 (200- day MA) any break below will drag the index down till 22000/21800.
- The near term resistance is around 22450 (55-day EMA) and any convincing break above will take the index to next level till 22615 (20 day MA)/22800.
It is good to buy on dips around 22150-200 with SL at 21980 for the TP of 22620.
