• FxWirePro: Nikkei daily outlook

    Source: FxWire Pro - Technicals / 20 Aug 2019 07:31:52   Europe/London

    Major resistance- 20800

     

    Major support - 19900

     

    Nikkei is consolidating after hitting high of 20705 following the footsteps of Wall Street. The global stock markets have shown a good recovery on hopes of stimulus from major economy especially Germany and China. US 10 year jumped more than 10% and a 3-month yield got inverted by 30 basis points. The index is holding above 200-W MA and is currently trading around 20679.

     

    US Market- The Wall Street is trading slightly higher with Dow Jones and S&P500 closed at 25779 (0.39%), 2847 (0.25%) respectively.

     

    Japanese Yen- USDJPY is in a narrow range between 105.05 and 106.98. Any break above 107.10-20 confirms minor bullishness and a jump till 108/109.30 is possible. Bearish continuation only below 104.60.

     

    Shanghai composite- Shanghai is trading higher for 4th consecutive days after more than a 10% decline. It is currently trading around 2834. Any close above 2830 confirms bullish continuation and jump till 2900/2945 likely.

     

    Technically Nikkei facing strong resistance around 20800 and any major jump can be seen only if it closes above this level. Any close above targets 21195/21400.

     

    On the flip side, near term support is around 19900 and any violation below this level will take the index till 19600/19200.

     

    It is good to buy on dips around 20000 with SL around 19700 for the TP of 20800.

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