FxWirePro: Nikkei trades lower as trade war escalates, good to sell on rallies

• Asian markets were trading lower as trade war escalates between U.S and China which will be affecting entire global demand. US President Trump has planned to impose “pretty significant” tariffs of almost $50 billion of Chinese goods covering more than 650 products on Friday. Euro hits two week low  and continuing its weakness after more dovish ECB comments. ECB is planning to reduce bond buying programme but to keep rates on hold till summer 2019. Nikkei declined more than 300 points from the high 23024. US markets have closed slightly weak with Dow Jones 25090 (0.34% lower) and S&P500 2779 (0.10% lower). US futures is trading slightly weak with Dow Jones at 24975 (0.44% lower) and S&P500 2766 (0.43% lower). Nikkei is currently trading around 22668 0.69% lower.
   
• USD/JPY has shown a minor recovery of more than 100 pips from low of 109.91.. The pair hits high of 110.90 and is currently trading around 110.43.    
   
• On the lower side, index major support is around 22580 (20- day MA) and any break below will drag the index down till 22480 (daily Kijun-Sen) /22380 (55- day EMA)/22137 (100- day MA)/21957 (200- day MA).
   
• The near term resistance is around 23050 and any convincing break above will take the index to next level till 23290/23500.

It is good to sell on rallies around 22750-800 with SL at 23050 for the TP of 22380.