FxWirePro:Nikkei Daily Outlook

Asian markets are trading higher especially Shanghai composite gained more than 1% on US -China trade talks optimism.Nikkei has recovered more than 200 points form low of 21378 and defense, pharma and construction sector outperform.Fed chairman Powell has said that U.S  economy is to grow solid but at a s lower pace on account of ongoing political uncertainty and US-China trade war.US market has closed slightly lower with Dow Jones at 26058 (0.13% lower) and S&P500 2793 (0.08% lower). USDJPY hs lost more than 80 pips from the high of 111.23.It is facing strong resistance around 111.40 and is currently trading around 110.58.

On the lower side, near term support is around 21350 (200-H MA) and any break below targets 21235 (300- H EMA)/21000/20800.The index should break below 20800 for further direction.

 The near term resistance is at 21650 and any break above targets 21918/22200.

It is good to buy on dips around 21000 with SL around 20700 for the TP of 21550/21700.