FxWirePro: Nikkei trades weak on strong yen, good to sell on rallies

• Asian markets are trading lower especially Nikkei trading near 3- month low as the tariff deadline looms. Most of the investors fear that Washington will go ahead with plans of imposing tariffs on $34 billion worth of Chinese goods on Jul 6th 2018. Chinese yuan is trading near 11-month low and Shanghai composite is continuing its bearish trend. The index has lost 0.87% and is currently trading around 2764. Japanese markets decline was mainly due to decline in tech related shares as Micron largest chip maker lost more than 5% yesterday. US markets closed slightly flat with Dow Jones 24174 (0.54% lower) and S&P500 2713 (0.49% lower).USD/JPY which is the main indicator of geo political tension has shown a minor selling from the high of 111.13.US futures is trading marginally positive with Dow Jones at 242288 (0.18% higher) and S&P500 2716 (0.20% higher). Nikkei is currently trading around 21690 0.08% higher.
   
• USD/JPY has lost almost 80 pips from the high of 111.13on account of rising US China trade war. It hits low of 110.28 and is 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.
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It is good to sell on rallies around 21850-900 with SL at 22050 for the TP of 21190..