Japan 225 (NIKKEI 225) Uptrend Stays Intact as Market Consolidates at High Levels

The Japan 225 market has been making its way to elevated price levels for a long time, breaching one resistance level after another. Lately, however, momentum appears to have weakened, and the market is moving sideways.

Key Levels

Resistance: 54,000, 55,000, 56,000

Support: 53,000, 51,000, 49,000

Japan 225 Keeps Base Above the 50,000 Mark

For about two consecutive weeks, price action in the Nikkei 225 market has remained in a consolidation phase. This is highlighted by the blue trend lines drawn on the futures daily chart. The ongoing session continues to stay above the 9-day Exponential Moving Average (EMA) line despite the consolidation.

Meanwhile, the Stochastic Relative Strength Index (SRSI) lines are descending toward the oversold region. Nevertheless, considering the behavior of recent price candles, the market appears capable of continuing upward.

Nikkei Retains Bullish Integrity

Scaling down to the 4-hour timeframe, price activity remains above the 9-day EMA curve, despite the red appearance of the ongoing session.

The most recent price candle is bearish but suggests that selling pressure has significantly weakened. This favors the bulls, as price action may rebound upward from above the 9-day EMA.

Likewise, the SRSI lines remain tilted upward as they rise toward the overbought region. Therefore, the 54,000 level remains a reasonable upside target.

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