FxWirePro: Nikkei trades near 1-month low as trade war fear escalates, good to sell on rallies
Asian markets are trading weak and most of market is trading near 9- month low. The escalating trade war between US and China are dragging down investor confidence, spending and it will hurt growth of the global economy.…
Asian markets are trading weak and most of market is trading near 9- month low. The escalating trade war between US and China are dragging down investor confidence, spending and it will hurt growth of the global economy. US markets closed slightly lower with Dow Jones 24117 (0.68% lower) and S&P500 2699 (0.86% lower). Shanghai composite index declined sharply almost more than 20% from the high of 3587 and is curretly trading around 2796.USDJPY which is the main indicator of geo political tension has shown a good recovery of 100 pips from low of 109.36 and this shows that investors slightly ignoring trade war tension.Nikkei has pared some of its loss almost 200 points from intraday’s low of 22043.US futures is trading marginally flat with Dow Jones at 24270 (0.01% lower) and S&P500 2723 (0.10% higher). Nikkei is currently trading around 22260 0.36% lower.
USD/JPY has shown a good recovery of almost 100 pips. But upside is capped due to trade worries. The pair hits high of 110.49 and is currently trading around 110.26.
On the lower side, index major support is around 22200 (200- day MA) any break below will drag the index down till 22000/21800.
The near term resistance is around 22450 (55-day EMA) and any convincing break above will take the index to next level till 22640 (20 day MA)/22800.
It is good to sell on rallies around 22400-450 with SL at 22600 for the TP of 22200/21850.
