The Nikkei has shed 1.34% as US yields rally across the board

A quick look at today: the Nikkei retained its composure around the 27,100 level after dropping 1.34%.

The US yield curve struggled to maintain its balance as bond yields rose across the board. The iShares U.S. Treasury Bond ETF declined 0.79% to trade at $22.69.

While price action maintains a negative bias, Japan Services PMI came out at 53.6, while a consensus of analysts was expecting 51.5.

Concerning technical analysis and more specifically, trend indicators, Nikkei made an initial break below its 200 day Simple Moving Average at 27,163, a possible indication of a forthcoming negative trend. Having stamped out a session range of 27,046 to 27,300, Fibonacci-inclined the Nikkei traders were highly concentrated around active Fibonacci support at 27,100. Analysis based on the asset volatility indicates that the Nikkei's lower Bollinger Band® is at 27,158, indicating that the asset has overextended to the downside and could, therefore, bounce back as buyers look for bargains. Technical chart analysis shows the Nikkei could begin to recover as it approaches significant support, now 96.06 points away from 27,000. Dipping below could be an indication that further losses are ahead.

Overall, the technical outlook suggests the Nikkei is likely to remain muted for the immediate future, with no clear-cut direction.

In the meantime, negative performances are also seen in other markets, Dow Jones lost 2.06% today and closed at 33,827. After ending today's session at 2,459, KOSPI Composite Index lost 41.32 points and is trading around 2,417.68. S&P 500 drops 2% today and closed at 4,079.

Furthermore, Japan National Core CPI (YoY) (Jan) will be released tomorrow at 23:30 UTC.

Trading mostly sideways for a month. The Nikkei hit a significant low of 15.42 around 5 months ago, but has since recovered 178,065%.