FxWirePro: Nikkei holds steady on weak yen, good to sell on rallies

Nikkei is consolidating for the past 3 days after a 3- week of the rally on account of easing the US-China trade war. But the escalation of tension in the Middle East after the attack on Saudi Aramco crude oil production has dented bullish sentiment of the stock market. The index hits an intraday high of 22038 and is currently trading around 21988.

US 10-year bond yield has declined more than 4% after a massive jump of more than 30% and spread between US 10-year and US 2-year narrowed slightly from 9 bps to 7 bps. USDJPY is holding above 108 level and any violation above 108.35 confirms trend continuation.

On the flip side, 21600 will be acting as near term support and any violation below targets 21292/21000.

The near term resistance is around 22000 and any break above psychological level will take the index till 22280/22500.

It is good to buy on dips around 21600 with SL around 21290 for the TP of 22500.