Nikkei hesitates on the back of BOJ bond buying cut

• Nikkei slides on BOJ bond buying cutback.
• Decline cools off recent rebound off February lows.

The Nikkei Index is continuing to trade on the backfoot today, currently trading just beneath the 22,200.00 level.

The Nikkei peaked at 22,510.00 yesterday but has begun retreating, and a bounce earlier today fizzled out when the Bank of Japan (BOJ) unexpectedly dropped their purchases of long-dated government bonds from 80 billion Yen to 70 billion. While the BOJ is stating that the move is meant to control the yield curve and maintain price control, and not an act of tapering their asset purchasing programs, but the 'taper-like' move is being treated as such by market participants anyway, with the Yen jumping on reaction and Asia equities taking a hit.

Nikkei Technicals

Daily candles are beginning to show weakness with the last turnaround pricing in a potential lower high, while H4 charts show buyers continuing to pushing hard against the drop, plenty of buying power still built into the index; support is built up from 21,970.00 to 21,610.00, while resistance can be found at 22,510.00 and 22,650.00.