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Nikkei plunges over 2%, stronger yen weigh

FXStreet (Mumbai) - The Japanese equities index opened 200 points gap down in Asian morning and drifted even lower tracking overnight Wall Street’s losses and on a relatively stronger yen.

Nikkei trades -2.37% down at 17390.50 levels at time of writing, close to the day’s low at 17365.50 in the early Asian hours. Broad based sell off in equities overnight and a stronger yen on risk-off moods also contributed to the weak start in the Nikkei index today. The index breadth is negative with the advance decline ratio at 14:209.

Major losers were JTEKT Corp., Komatsu, Kawasaki Heavy Industries, Mitsui Chemicals, Fuji Heavy Industries, Toray Industries, Fujitsu and Mitsubishi Motors losing 3 to 5 percent.

Among the stocks that bucked the trend, Nippon Suisan Kaisha, GS Yuasa Corp., Shiseido Co. and Nippon Telegraph & Telephone Corp. moved 1 to 2.3 percent.

Nikkei Technical Levels

The index has an immediate resistance stands at 17491.50 (5-day SMA) above which gains could be extended to 17662.29 (10-day SMA) levels. Meanwhile, support is seen at 17330 (Nov 28 Low), 17212.48 (Nov 27 Low) and from here to 17108 (Nov 21 Low) levels.

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