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FxWirePro: Nikkei Daily Outlook

Major resistance- 20800

 

Major support - 19900

Nikkei is consolidating after hitting low of 19923. The global stock markets have shown a huge sell-off in this week on the US-China trade war and the inverted yield curve. US 10 year and 3-month yield got inverted by 25 basis points. The index is holding above 200-W MA and is currently trading around 20415.

 

US Market- The Wall Street is trading slightly higher and closed with Dow Jones and S&P500 closed at 25779 (0.39%) and 2847 (0.25%).

 

Japanese Yen- USDJPY is trading in a narrow range between 105.05 and 106.98. Any break above 107.10-20 confirms minor bullishness and a jump till 108/109.30 is possible. Bearish continuation only below 104.60.

 

Shanghai composite- Shanghai is trading slightly higher after more than a 10% decline. It is currently trading around 2834. Any close above 2830 confirms bullish continuation and jump till 2900/2945 likely.

 

Technically Nikkei facing strong resistance around 20800 and any major jump can be seen only if it closes above this level. Any close above targets 21195/21400.

 

On the flip side, near term support is around 19900 and any violation below this level will take the index till 19600/19200.

 

It is good to buy on dips around 20000 with SL around 19700 for the TP of 20800.

 

By Rangarajan Hariharan
  • Market Data
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