Nikkei – off lows, hovers around 50-DMA

The Japanese equity index is closely mimicking the action in the Dollar-Yen pair.

The USD/JPY pair clocked a session low of 102.83, before recovering losses to trade positive on the day around 103.10 levels. Consequently, the index recovered from the low of 16,802 levels to trade around the 50-DMA level of 16,869 levels.

However, the overnight loss in the US equities is making sure the index remains in the negative territory.

Nikkei Technical Levels

A break above 16,996 (session high) would open doors for a gap filling move to 17,080 (previous day’s low). On the lower side, breach of 50-DMA support of 16,869 could yield a re-test of the daily low of 16,802 levels.