Nikkei tests 50-DMA support

Japan’s Nikkei index dipped briefly to 19,198.8 levels before trimming losses to trade above the 50-DMA level of 19,226.4 levels. 

Top gainers in the index include names like Kobe Steel, Olympus Corp, Hino Motors and Nippon Electric Glass. Meanwhile, the losing side includes Alps Electric, Nisshin Steel Holdings. 

Investor sentiment is dampened by a fall in US equities. The resulting strength in the Yen is also weighing over the Japanese stocks. 

The data released earlier today showed a Japanese trade deficit blew beyond expectations, climbing to a 2-year high. The current account surplus narrowed. 

Nikkei Technical Levels

A break above 19,326.4 (session high) would open doors for 19,419.2 (Feb 22 high). On the downside, breakdown of support at 19,115.1 (Feb 20 low) could yield a sell-off to 18,995.6 (Feb 27 low).