Major resistance- 20800
Major support - 19900
Nikkei is trading slightly higher following the footsteps of global markets on US-China trade optimism. The US 10 year bond yield stabilized slightly after hitting a 3-year low and jumped more than 6%. The spread between US 10-year and 2-year still inverted and it has narrowed to 2 basis points from 6 basis points. The index hits high of 20741 and is currently trading around 20736.
US Market- The Wall Street has closed lower with Dow Jones and S&P500 26362 (1.25%) and 2924 (1.27%).
Japanese Yen- USDJPY is trading higher and on the verge of a breakout. Any convincing break above 106.60 confirms intraday bullishness and a jump till 107-107.20.
Shanghai composite- Shanghai is struggling to close above 300- day EMA and any further bullishness can be seen only if closes above 2911 level. Any convincing break above targets 2960/3000 is possible.
Technically Nikkei facing near term resistance around 20800 and any minor jump can be seen only if it closes above this level. Any close above targets 21220/21500.
On the flip side, near term support is around 19900 and any violation below this level will take the index till 19600/19200. The minor support is around 20400/20100.
It is good to buy on dips around 20600-625 with SL around 20360 for the TP of 21200.
