Japan 225 (Nikkei 225) Dips Strongly

The Nikkei 225 market experienced a strong price dip midway through the previous week. This occurred despite notable gains in construction orders and commodity (Rice) prices.

Key Price Levels

Resistance Levels: 36,500, 37,000, 37,500

Support Levels: 36,000, 35,500, 35,000

Nikkei 225 Heads South

In what seems like a freefall, Japan 225 price action has been declining sharply. The price candles from the past three sessions have very little shadow, indicating that downward forces are exerting strong pressure without much resistance.

At this point, the market is now trading below all the moving average (MA) curves, affirming that bearish forces are dominant. The Stochastic RSI lines continue to decline sharply into the oversold region, suggesting that the market is currently overwhelmed by headwinds.

Japan 225 Bearish Momentum Slows Down

While the Nikkei 225 market remains bearish on the 4-hour chart, a closer look at price movement reveals slowing momentum. Although price action is still below the MA line and the most recent price candle remains bearish, the smaller size of the candle suggests that downward momentum may be easing.

The Stochastic RSI lines have flattened in the oversold region, with the terminals converging and moving sideways at the 0.00 mark. Therefore, other fundamental factors may soon come into play, potentially triggering a rebound off the 36,000 base level.

Make money without lifting your fingers: Start trading smarter today