- Nikkei has shown a good recovery of almost more than 500 points after comment regarding trade war by Chinese President Xi. The index hits high of 21961from yesterday’s low of 21427.. Chines President Xi announces plan to open up Chinese economy by lowering import tariffs for autos and other important products. S&P futures slightly pared yesterday loss and is trading around 2647 1.08% higher. It is currently trading around 21826 1.07% higher.
- US dollar index declines slightly after hitting high of 90.60. Markets eyes US CPI data and Fed minutes meeting to be released this week for further direction.
- USD/JPY has shown a minor 60 pips after taking support near 10- day MA. It is currently trading around 107.17. The pair should break above 107.50 (55- day EMA) for minor jump till 108/108.50.
- On the lower side, index major support is around 21650 (55- H EMA) and any break below will drag the index down till 21398 (200- H MA)/21200.
- The near term resistance is around 22000 and any break above will take the index to next level till 22200/22420.
It is good to buy on dips around 21400-450 with SL at 21180 for the TP of 21800/22000.
