While most stock markets have experienced some pullback from their previous upward trends, the Japan 225 has also seen its share. However, the downward retracement here appears minimal, as price action lingers around key technical levels. Let’s dive in deeper below.
Key Price Levels
Resistance Levels: 39,000, 40,000, 41,000
Support Levels: 38,000, 37,000, 36,000
NIKKEI 225 Contemplating Further Descent
The Japan 225 daily chart shows that price action has gently descended toward the 9-day Exponential Moving Average (EMA) line. However, over the past two sessions, the market has been moving sideways, hovering just above the 9-day EMA.
Similarly, the Moving Average Convergence Divergence (MACD) lines are intertwined and trending sideways, suggesting market indecision. As a result, it’s reasonable to anticipate a potential upward rebound, especially since bears have failed to breach the support at the 9-day EMA.
Japan 225 Edges Slightly Higher
On shorter time frames, the NIKKEI 225 can be seen edging slightly higher toward the end of the week. A closer look at the last two price candles suggests growing bullish momentum, as the most recent candle is higher than the previous one.
However, price action still remains below the 9-day EMA line, but a breakout above it may indicate a further upward retracement. Meanwhile, the MACD lines have descended to the equilibrium level, and the pale red color of the last histogram bar hints at a potential shift in momentum. Still, traders may consider targeting nearby upside levels around the 39,000 mark.
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