FxWirePro: Nikkei declines more than 1% on US-China trade war, good to sell on rallies

• Asian markets were trading lower and hits 4 month low as trade war escalates between U.S and China which will be affecting entire global demand. US President Trump warned that US would impose a 10% tariff on $200 billion of Chinese goods after Beijing’s decision to raise tarriffs on $50 billion in US goods. Nikkei declined more than 500 points from the high 23024. US markets have closed slightly weak with Dow Jones 24987 (0.41% lower) and S&P500 2773 (0.21% lower). US futures is trading weak with Dow Jones at 24712 (1.01% lower) and S&P500 2746 (0.95% lower). Nikkei is currently trading around 22290 1.21% lower.
   
• USD/JPY has shown a minor decline of more than 50 pips on account geo plotical tensions . The pair hits high of 110.90 and is currently trading around 109.60.    
   
• On the lower side, index major support is around 22200 any break below will drag the index down till 22166 (200- day MA)/22000 (100- day MA).
   
• The near term resistance is around 22590 (20- day MA) and any convincing break above will take the index to next level till 23290/23500.

It is good to sell on rallies around 2350-400 with SL at 22600 for the TP of 22000/21900.