A quick look at today: the Nikkei dropped 400 points early on and stayed at 26,400.
Investor risk appetite was subdued as stocks were sold off in favour of perceivably safer alternatives such as government bonds. The iShares U.S. Treasury Bond ETF has gone up 0.9% to trade at $23.46, thereby indicating that government bond yields were downbeat across the yield curve.
Meanwhile, Japan Trade Balance (Dec) released yesterday at 23:50 UTC with a figure of -1.45 trillion, while the previous figure was -2 trillion. Data for Japan Exports released yesterday at 23:50 UTC is better than expected with 11.5%, but worse than previous figure of 20%. Japan Adjusted Trade Balance released yesterday at 23:50 UTC with a figure of -1.72 trillion, while the previous figure was -1.73 trillion.
The MACD is significantly above its signal line, which suggests the market is running out of bullish momentum and could revert to a negative outlook as bears regain control. The Nikkei's upper Bollinger Band® is at 26,747 which indicates a further downward move may follow. Despite this, the Nikkei could begin to recover as it approaches significant support, now 8.82 points away from 26,400. Dipping below could be an indication that further losses are ahead.
Several technical indicators are adding weight to the bearish momentum seen today and forecasting the Nikkei to extend its recent losses.
In the meantime, negative performances are also seen in other markets, Dow Jones falls 1.81% today and closed at 33,900. After ending today's session at 3,991, S&P 500 lost 62 points and is trading around 3,929. Nasdaq descends 1.24% today and closed at 11,100.
Furthermore, Japan National Core CPI (YoY) (Dec) will be released today at 23:30 UTC. Japan CFTC JPY speculative net positions is expected tomorrow at 20:30 UTC.
The Nikkei hit a significant low of 15.42 around 4 months ago, but has since recovered 173,643%.