Japan 225 (NIKKEI 225) Retreats From Lofty Targets

The Japan 225 index has retreated from its previous lofty targets over the past week. As a result, the futures now trade below key technical levels, which may deter bullish investors in the market.

Key Levels

Resistance: 52,000, 54,000, 56,000

Support: 50,000, 48,000, 46,000

NIKKEI Price Hovers Below the 9-Day EMA

Price activity in the Japan 225 market has clearly experienced a pullback. However, despite the decline, the futures remain only slightly below the 9-day Exponential Moving Average (EMA) line.

The latest price candle on the chart is red, featuring a short upward body with a lower shadow—indicating limited bearish pressure. Meanwhile, the Stochastic Relative Strength Index (SRSI) lines have fallen sharply into the oversold region, even with a modest price decrease. This suggests that downward momentum may soon weaken, and further declines could be limited.

Japan 225 Bulls Launch a Frontal Assault

On the 4-hour chart, price action in the NIKKEI 225 has started to retrace upward. The last two candles on this chart are green, with the most recent one sitting directly on the 9-day EMA curve.

At the same time, the SRSI lines are showing an upward trajectory following a recent bullish crossover. This technical alignment supports the view that price action may soon advance toward the 52,500 level in the near term.

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