NIKKEI 225 is trading down 1.49% at 27824.22

World stocks hit a two-week low on Friday as rate hike guidance from the European Central Bank and jitters over upcoming U.S. inflation data stoked concerns about global growth, while verbal intervention from Japan boosted the yen

The ECB said on Thursday it would deliver its first interest rate rise since 2011 next month, followed by a potentially larger move in September.

Analysts at Deutsche and Morgan Stanley (NYSE:MS) lifted their euro zone rate hike forecasts on Friday.

Investors expect the Federal Reserve to raise interest rates by 50 basis points next week, especially if U.S. consumer price data on Friday confirms elevated inflation.

The consensus forecast sees a year-over-year inflation rate for May of 8.3%, unchanged from April.

MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.9%, weighed down by a 1.2% drop in resources-heavy Australia and a 1.1% retreat in South Korea. Japan’s Nikkei fell 1.5%.

However, continued strong buying by foreign investors and cautious hopes of regulatory easing on tech firms lifted China stocks, despite news that the cities of Beijing and Shanghai were back on COVID-19 alert.

On technical fronts NIKKEI 225 RSI stood at 65.12 and currently it is trading above 20 and 50 days MA & below 5 days MA. So, BUY position can be taken with following target and stoploss:

TRADE SIGNAL – : NIKKEI 225 – BUY: 27729.00, TARGET: 27875.00, STOP LOSS: 27633.00