FxWirePro: Nikkei declines more than 1% on weak US markets and rising geopolitical tensions, good to sell on rallies

Asian markets is trading weak especially Nikkei lost more than 0.8%. Global stock markets is in downtrend following footsteps of US.The geopolitical tensions between US and Riyadh after killing of journalist Jamal Khashoggi at its consulate in Turkey. US President is expected to punish Saudi economically. The Italy  budget deficit problem is another risk which increasing Italian bond yield and European commission will decide on next step today for assessing Italy’s 2019 budget balance.US markets has closed slightly higher with Dow Jones 25317 (0.43% lower) and S&P500 2755 (0.43% lower) .Nikkei has declined more than 400 points from the high of 22597. It is currently trading around 22177 1.04% lower. US futures is trading slightly higher with Dow at 25165 0.61% lower and S&P500 2738 (0.60% lower).

USD/JPY `has declined more than 30 pips from high of 112.88. The near term resistance is around 113.13 and any break above targets 113.48/114. It is currently trading around 112.59.

On the lower side, near term support is around 22000 and any break below targets 21750/21500.Any break below 21750 confirms further weakness.

The near term resistance is at aid 224150 (200- day MA) and any break above targets 22720/23000.

It is good to sell on rallies around 22425-435 with SL around 22700for the TP of 21750.