FxWirePro: Nikkei jumps on Fed rate cut hopes, good to buy on dips

Nikkei is in uptrend following footsteps of Wall Street on Fed rate cut hopes. US ADP employment came at 102K for the month of Jun compared to the forecast of 140K and is well below the average of 211000 jobs created in the three months ending in Apr. US 10 year yield continues to trade lower and is has closed below 2%. The index declined more than 250 points and is currently trading around 21601.

US Market- The Wall Street has closed higher and hits a fresh all-time high with Dow Jones and S&P500 closed at 26966 (0.67%) and 2995 (0.77%) higher.

Japanese Yen- USDJPY is consolidating after declining more than 100 pips from a high of 108.83. The near term support is at 107.50 and any break below targets 107/106.80. The pair is still in bearish mode and any reversal can be seen only above 109. It is currently trading around 107.80.

Shanghai composite- Shanghai is trading slightly lower for 2nd consecutive day and lost more than 1.4%. Short term trend is bullish as long as support 2945 holds. It is currently trading around 3002.

Technically, the index is facing strong support around 21498 (300- day EMA) and any violation below will drag the Nikkei till 21243 ( 200- day MA)/21000.

On the higher side, near term resistance is around 22000 and any violation below this level will take the index till 22250/22480.

It is good to buy on dips around 21500 with SL around 21250 for the TP of 22000/22250.