Nikkei recovers to 5-DMA hurdle

Japanese benchmark index Nikkei 225 recovered from the daily low of 17130 to trade around the 5-DMA level of 17,167.

The index is closely tracking the Dollar-Yen pair, which too recovered from the session low of 104.30 to trade largely unchanged on the day around 104.47.

Caution ahead of the US elections strengthened the bid tone around Yen in early Asia. That led to losses in the Nikkei index.

The index had gapped higher on Monday, tracking the similar rise in the USD/JPY pair.

Nikkei Technical Levels

A break above 17,247 (daily high) would expose 17,280 (10-DMA) above which the index could target 17,414 (Oct 27 high). On the other hand, a breakdown of support at 17,167 (5-DMA) could yield a fresh sell-off to 16,966 (Friday’s high) and 16,894 (50-DMA).