Nikkei has lost more than 500 points after Donald Trump said that the US will impose a 10% tariff on the remaining $300 billion. US markets have closed more than 1% lower with Dow Jones 26583 (1.05%) and S&P500 2953 (0.90%). The Japanese index hits a low of 21013 and is currently trading around 21068.
USDJPY has shown a massive sell-off of more than 200pips from the temporary top made at 109.31. Any break below 106.80 confirms further bearish continuation.
US 10 year bond yield slumped nearly 18 basis points on hopes of more rate cut and weak US ISM manufacturing data. US ISM data came in at 51.2% slowest pace in three years.
On the flip side, near term support is around 20990 and any break below will drag the pair till 20750/20500.
The near term resistance is around 21213 (200- day MA) and any break above will take the index till 21443-21515 (21- day MA and 55- day EMA).
It is good to sell on rallies around 21225-250 with SL around 21515 for the TP of 20750.
