Japan 225 (Nikkei 225) Rebounds Moderately

Japan 225 has witnessed considerable selling pressure from foreign investors, leading to a significant market decline. However, the market experienced a minor rebound in today’s trading activity, likely influenced by foreign markets. Nevertheless, the rebound appears weak, suggesting that domestic factors continue to have a greater influence on price performance in this market.

Key Price Levels:

Resistance Levels: ¥39,000, ¥40,000, ¥41,000

Support Levels: ¥38,000, ¥37,000, ¥36,000

Nikkei 225 Maintains the General Trend

While the Japan 225 market recorded only modest gains in today’s trading activity, this has helped maintain the general uptrend. This trend originated in July 2024 when the market saw a significant price surge and has generally persisted since then.

However, price action appears under bearish pressure, as it has fallen below most of the Moving Average (MA) lines on the chart. Similarly, the Stochastic Relative Strength Index (RSI) indicator lines are dipping into the oversold region. Nonetheless, the minor rebound in the market has caused a slight upward deflection in the RSI lead line, raising hopes for a more significant market recovery shortly.

Japan 225 Bulls Under Pressure But Eye ¥38,800 Mark

The Nikkei 225 market on the 4-hour chart reveals that price action remains under bearish pressure. This is evident as price activity is positioned well below all the MA lines on the 4-hour chart. However, the most recent price candle is bullish and remains above the drawn upward-sloping trendline on the chart.

Additionally, the Stochastic RSI lines are trending upward from the oversold region. This supports the short-term trajectory of the market toward the ¥39,000 level, although price action remains below all the MA curves. At this point, traders can only hope that price movements respect the long-term market trend. Furthermore, market participants should closely monitor domestic influences for potential catalysts in this market.

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