Asian markets are trading slightly lower on first day of trading week on account of escalating trade tensions between US and China.US President Donald Trump has said that US is planning to impose additional tariffs of $267 billion on Chinese goods. But better than expected Japan’s GDP data has supported Nikkei index. Japan’s second quarter GDP came at 3% compared to forecast of 2.6%.US markets has closed mixed with Dow Jones 25916 (0.31% lower) and S&P500 2871 (0.22% lower) and NASDAQ 7902 (0.26% lower). US futures are currently trading slightly lower with Dow Jones 25989 (0.21% higher) and S&P500 2879 (0.24% higher). Nikkei is trading around 22341 (0.35% higher).
USD/JPY has gained more than 50 pips from the low of 110.38.It is currently trading around 110.91 (0.13% lower).
On the lower side, index near term support is around 22100 and any break below will drag the index down till 22000. The major long term support is around 21750.
The near term resistance is around 22370 and any convincing break above will take the index to next level till 22556/22800.
It is good to buy on dips around 22175-200 with SL at 22000 for the TP of 22800.
