Nikkei continues to trade lower on recession fear.US markets is trading weak for past 2-week and lost more than 5% due trade war.US ISM manufacturing data came at 52.1 compared to forecast of 53 lowest level in 31 months. US bond yield hits fresh 21-month low at 2.05%. USDJPY is trading lower and declined slightly below 108 level on safe haven demand.It is currently trading around 108.02.The spread between US 3 month and 10 year yield widened to 25 basis point from 10 basis point. The index is consolidating after hitting low of 20298 and is currently trading around 20413.
On the higher side, near term resistance is around 20561 and any violation above will take the index to next level till 20800/21000.
The near term support is around 20185 and any convincing break below will drag the index down till 20000/19650.
It is good to sell on rallies 20525-550 with SL around 20800 for the TP of 20000/19650.
