The Nikkei 225 market has continued to progress along an upward trajectory since testing an upward-sloping trendline. This is occurring at a time when the Japanese yen is experiencing notable depreciation, which has bolstered exports in the country.
Key Price Levels:
Resistance Levels: ¥40,000, ¥42,000, ¥46,000
Support Levels: ¥39,000, ¥38,000, ¥37,000
Japan 225 Continues to Edge Higher
The Nikkei 225 market has continued to climb higher since the beginning of the week. Yesterday’s trading session produced a moderate upside retracement. The ongoing session has continued the trend but appears to be under pressure, as the corresponding price candle displays equal upper and lower shadows.
Nonetheless, the session remains bullish. The price candle is still closely aligned with the 50-day Moving Average (MA) line. Simultaneously, the Stochastic Relative Strength Index (RSI) indicates that upward momentum is still prevailing.
Nikkei 225 Bulls Face Resistance
The Japan 225 4-hour market chart reveals that price action has encountered resistance at the 200-day MA line. The current session shows only a minimal upward rebound, keeping the market slightly above the 50-day MA line. Meanwhile, the 100-day and 200-day MA lines appear to be converging, potentially signaling an impending crossover above the price action.
Additionally, the Stochastic RSI lines are already in the overbought region, with the terminal of the indicator maintaining an upward trajectory. However, downward pressure may be looming as a crossover between the 100-day and 200-day MA lines could trigger further bearish movements. Even so, traders may still target the ¥40,000 threshold.
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