Nikkei demoralized by Yen strength

Japanese benchmark index gapped lower this Tuesday morning and is now fast losing height on account of the strength in the Japanese Yen. 

The index clocked a session low of 190.18 levels and was last seen trading around 190450. 

The Bank of Japan (BOJ) kept the interest rates and the yield curve control target unchanged as expected, but extended the debt buying for the loan program by a year. 

This was accompanied by sanguine economic outlook and a downward revision of the long run inflation forecasts. However, that failed to weaken the Yen. Moreover, the Dollar-Yen pair extended the losses to 113.25 levels. 

Consequently, the Japanese equities dropped to fresh session lows. 

Nikkei Technical Levels

A break below 19,000 (zero figure) would open the doors to 18,935 (50-DMA), under which a major support is seen at 18,991 (Dec 30 low). On the other hand, a breach of hurdle at 19,100 could yield a re-test of 19,177 (Jan 20 high). A violation there would expose 19,327 (Dec 22 low).