Japan 225 (Nikkei 225) Resurfaced Above 38,000 as Bulls Appear Sluggish

The Japan 225 market has largely maintained an upward trajectory due to a wave of positive fundamentals. Japan’s real estate investment recently hit a record high of $2.1 trillion. Similarly, there has been notable investment in the country’s digital transformation. These factors, among others, appear to have acted as catalysts supporting the albeit sluggish upward retracement.

Key Price Levels

Resistance: 39,000, 39,500, 40,000

Support: 37,000, 36,000, 35,000

Nikkei 225 Finds Support

Price action in the Japan 225 market has shown only modest gains, leading to a sluggish rise past the middle band of the Bollinger Bands indicator. The latest price candle can be seen sitting just above the middle band.

Likewise, the latter part of the Bollinger Bands appears slightly tilted upward, even as the bands contract. However, the Smoothed Rate of Change (SROC) indicator shows a slight downward trajectory but remains above the equilibrium level. Consequently, upward forces still seem capable of driving further gains in this market.

Japan 225 Is Hugging Higher Limits

On the 4-hour chart, the Nikkei 225 market shows that price activity continues to hover at higher levels. The last three price candles have been pressing against the uppermost limit of the Bollinger Bands.

Nevertheless, the latest candle remains green, indicating sustained bullish momentum. Similarly, the SROC indicator line continues to rise steadily, with its terminal crossing above the equilibrium level and turning green. Therefore, it is likely that the market may proceed toward the 38,500 level or even higher in the near term.

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