- Asian markets are trading extremely weak mainly due to political uncertanity in Italy. The yen jumped sharply yesterday on fears that Italy will exit Europe. Italy 2- year bond yield was up 158 bais point and hits high of 2.83% highest level till 2012and 10 year yield rose 76 basis point to 3.44% highest since 4 years. Italy Credit default swaps jumped by 59% to 262 bps , the highest level since Oct 2013. US 10 year yield has declined below 2.90% till 2.77% for the first time this month.US markets are closed more than 1% lower yesterday with Dow Jones 24361 (1.58% lower) and S&P500 2689(1.16% lower). US futures is trading flat with Dow Jones at 24417 (0.05% higher) and S&P500 2693 (0.03% higher). It is currently trading around 22015 0.14% lower.
- USD/JPY has declined more than 100 pips yeterday and hits low of 108.11. The pair has taken support near 100- day MA.Any further weakness can be seen if it breaks below 108. It is currently trading around 108.65.
- On the lower side, index major support is around 21880 (200- day MA) and any break below will drag the index down till 21697 (Apr 13th low).
- The near term resistance is around 22245 (55- day EMA) and any break above will take the index to next level till 22340/22560 (20- day MA)/22800.
It is good to sell on rallies around 22300-350 with SL at 22600 for the TP of 21750..
