Major resistance – 21000
Major support- 20200
Nikkei is trading flat after more than 4% jump from low of 19923 following footsteps of Wall Street. US markets recovered more than 6% after huge-sell off due to the US-China trade war. USDCNY consolidating after more than a 2.5% jump.
US 10 year bond yield has lost more than 5% after minor pullback till 1.79%. It is currently trading around 1.70%.
USDJPY has formed a double bottom around 105.50 and jumped more than 70 pips from the low. Any break above 106.30 confirms intraday bullishness and a jump till 106.60 likely.
On the flip side, near term support is around 20640 and any violation below will drag the index till 20238/19923.
The near term resistance is around 20820 and any convincing break above targets 21000/21200.
It is good to buy on dips around 20625-630 with SL around 20380 for the TP of 21000.
