Yield curve remains flat as both short and long-term yields tumble

Today at a glance: the Nikkei slid down from 28,658 to 28,564, taking a 93.2 points loss (0.33%)

Investor risk appetite was subdued as stocks were sold off in favour of perceivably safer alternatives such as government bonds. The one month Treasury rate fell from 3.95% to 3.4% alongside rising demand and prices. US bond yield gyrations reflect investor sentiment regarding the US economy, with lower yields suggesting investors remain confident about lending to the US government.

Meanwhile, Japan CFTC JPY speculative net positions released today at 20:30 UTC with a figure of -56,900, while the previous figure was -57,200. Japan Services PMI came out at 54.9, while a consensus of analysts was expecting 55.1. Japan National Core CPI (YoY) (Mar) came out at 3.1.

Nikkei made an initial break below its 5 day Simple Moving Average at 28,574, a possible indication of a forthcoming negative trend. A Bearish Harami chart pattern, which is a means of predicting reversals in bull markets. When a Bearish Harami is detected at the top of a prevailing uptrend, it is typically considered a bearish signal and a prelude to a potential trend reversal. The Nikkei's upper Bollinger Band® is at 28,925 which indicates a further downward move may follow. In contrast, the Nikkei could begin to recover as it approaches significant support, now 80.14 points away from 28,500. 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, Hang Seng is down to 20,076, losing 324.27 points, after ending the previous session around 20,400. KOSPI Composite Index is down to 2,544.4, losing 18.6 points, after ending the previous session around 2,563. ASX 200 is down to 7,330.4, losing 31.8 points, after ending the previous session around 7,362.2.

The Nikkei is now trading 185,747% above the significant low (15.42) it slumped to 7 months ago.