Major support - 20700
Nikkei is trading slightly higher with a cautious tone ahead of US Trump and Xi Jinping meeting on Saturday. Yesterday global markets have shown a minor recovery on positive comments from Trump on the trade deal. But any major move can be seen only after the G20 meeting.
US Market- The Wall Street has closed mixed with Dow Jones and S&P500 closed at 26526 (0.04%) lower and 2924.80 (0.38%) higher.
Japanese Yen- USDJPY has halted its 3 days of bullishness and declined more than 50 pips. The pair is still in bearish mode and any reversal can be seen only above 109. It is currently trading around 107.63.
Shanghai composite- Shanghai declined nearly 1% ahead of the G20 meeting. Any further weakness can be seen below 55 day EMA. It is currently trading around 2970.
Technically, the index is facing strong support around 21100 (20- day MA) and any violation below will drag the Nikkei till 20675/20465/20200.
On the higher side, near term resistance is around 21330 and any violation below this level will take the index till 21589/22000.
It is good to stay neutral till US Trump- Chinese Xi Jinping meeting tomorrow
