FxWirePro: Nikkei trades near 3-month low on escalating trade worries, good to sell on rallies
Asian markets are trading lower especially Nikkei erased 3- month low on rising trade war. US and China trade war is the major event which is dragging global equity markets. Chinese market has shown major decline of 1.4%…
Asian markets are trading lower especially Nikkei erased 3- month low on rising trade war. US and China trade war is the major event which is dragging global equity markets. Chinese market has shown major decline of 1.4% today after minor recovery . It is currently trading around 2740. US markets closed slightly flat with Dow Jones 24307 (0.15% higher) and S&P500 2726 (0.31% higher).Hang Sang tumbled more than 3% ahead of a July 6th deadline for US to impose $34 billion worth of Chinese exports to the US.USD/JPY which is the main indicator of geo political tension has shown a good recovery of 175 pips from low of 109.36 and shown a minor profit booking.US futures is trading marginally lower with Dow Jones at 24238 (0.15% lower) and S&P500 2722 (0.07% higher). Nikkei is currently trading around 21668 0.85% lower.
USD/JPY has broken major resistance of 110.90 high made on Jun 15th 2018 and hits high of 111.13. It is currently trading around 11085.
On the lower side, index major support is around 21579 (50% fib) any break below will drag the index down till 21300/21180 (trend line support).
The near term resistance is around 22080 (100-day MA) and any convincing break above will take the index to next level till 22289 (200 day MA)/22500.
It is good to sell on rallies around 21850-900 with SL at 22050 for the TP of 21190..
