Japan 225 (NIKKEI 225) Attempts to Recover Losses

While most stocks traded in the green during the previous week, downward forces struck profits and nearly wiped out all the gains in the Japan 225 market. However, the index managed to close in positive territory and continues to hold an upside advantage, suggesting the potential for further upward movement.

Key Levels

Resistance: 45,500, 46,000, 46,500

Support: 45,000, 44,500, 44,000

NIKKEI Sustains Above the 45,000 Mark

As noted earlier, price action has rebounded from a key technical level that may support bullish sentiment. The latest daily candle on the Japan 225 chart is green, appearing immediately after a red candle, indicating that buyers are attempting to reclaim control of price movements.

Meanwhile, the Stochastic Relative Strength Index (SRSI) lines are descending more steeply, with the lead line testing the 50 mark, despite only a moderate downward movement in prices. This suggests that bearish momentum is weak and may soon be overcome.

Japan 225 Price Action Keeps Pushing Limits

On the 4-hour chart, the NIKKEI has already risen above the 9-day EMA line. The latest candle can be seen breaking through resistance at the EMA curve while remaining green.

At the same time, the SRSI indicator has delivered a bullish crossover in the oversold region, with the lines rising upward and the lead line piercing the 20 threshold. Taken together with the recent upward trajectory of price action, this indicates that the market has the potential to move toward 45,500 and possibly even 46,000.

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