With a rebound in tech stocks and the Fed meeting just ahead, the Japan 225 market has started regaining traction. At this point, price action is making its way toward higher levels. Let’s take a closer look at how this may unfold.
Key Levels
Resistance: 54,000, 55,000, 56,000
Support: 53,000, 51,000, 49,000
Japan 225 Has a Good Base
The NIKKEI 225 market appears to be making a solid recovery from its earlier dip below key levels. The previous session recorded a notable pullback that pushed the market back above the 9-day Exponential Moving Average (EMA).
However, the current session is represented by a red price candle, which has kept the market just above the 9-day EMA, showing only minimal downward movement. Meanwhile, the lines of the Stochastic Relative Strength Index (SRSI) indicator are still dipping into the oversold region.
NIKKEI Dip Looks Consistent
A look at the Japan 225 market on the 4-hour chart reveals that the recent dip occurred only during the latest 4-hour session. Despite this, trading remains above the 9-day EMA curve, and the market has seen an upward retracement over the past three sessions.
Consequently, the SRSI indicator lines are pushing upward toward the overbought region. At this point, despite the minor pullback, traders may still target the 54,000 level for short-term gains.
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