Japan 225 (Nikkei 225) Records Minimal Rejection at the 20-Day MA

A common trend among Asian stocks is that they trimmed some of their previous gains. This is also true for the Japan 225 market, which closed the week’s trading with minimal losses. Investors continue to try and understand U.S. trade tariff policies, keeping everyone on edge.

Key Price Levels
Resistance Levels: 35,000, 36,000, 37,000
Support Levels: 34,000, 32,000, 30,000

Nikkei 225 Continues an Upward Path

While the Japan 225 market ended the previous week in the red, price action still shows signs of maintaining an upward trend. The last price candle is red and appeared after price action tested the resistance formed by the 20-day Moving Average (MA) line.

As a result, the market has retreated below all the MA lines on the chart. Similarly, the Stochastic Rate of Change (SROC) indicator is trending sideways below the equilibrium level, which undermines bullish expectations in this market.

Japan 225 Consolidates on Short Timeframe Charts

Looking at the Nikkei 225 on the 4-hour chart, the most recent price candle shows minimal price movement. It is a red, dash-shaped candle that has appeared just above a crossover between the 20- and 100-day MA lines.

Notably, the 50-day MA line is positioned below both the 20- and 100-day MA lines. The SROC indicator is moving sideways above the equilibrium level. Consequently, while staying alert to emerging fundamentals, traders may anticipate a trend continuation toward the 35,500 price level.

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