Japan 225 (Nikkei 225) Moves Northward With Reduced Momentum

The general stock market continued to edge higher over the week. Meanwhile, the greenback (U.S. dollar) has been slipping, even as trade talks continue to take center stage in the financial markets. The Japan 225, like other stocks, has been edging higher despite showing signs of reduced momentum. Let’s see how the market may evolve shortly.

Key Price Levels
Resistance Levels: 38,000, 39,000, 40,000
Support Levels: 37,000, 36,000, 35,000

Nikkei 225 Proceeds Higher Above 37,000

The Japan 225 market continued to edge higher over the previous week after breaching the 37,000 price mark. However, price action experienced a strong contraction on Friday and consequently closed with minimal losses.

Meanwhile, the Bollinger Bands retain their upward trajectory, suggesting that overall momentum may persist. Price activity remains above the middle line of the Bollinger Bands, increasing the likelihood of continued upward movement.

Additionally, the Moving Average Convergence Divergence (MACD) indicator lines are steadily rising after crossing the equilibrium level. The MACD histogram bars appear pale green but continue to form above the equilibrium line, further supporting a bullish outlook.

Japan 225 Bulls Are Holding On

Turning to the Nikkei 225 market on the 4-hour chart, price activity has continued to show minimal gains.

As a result, the market continues to consolidate above the middle line of the Bollinger Bands. The last two price candles on this chart appear green but are heavily compressed, indicating that headwinds are weighing on price movements.

The MACD lines remain above the equilibrium level but appear to be converging, hinting at a weakening uptrend. Therefore, unless contradicted by new fundamental developments, the market may retrace toward the 37,000 support level.

Make money without lifting your fingers: Start trading smarter today