Japan 225 (Nikkei 225) Sees a Minimal Decline as the U.S. Reviews Trade Tariffs

The Japan 225 market has moved off the baseline at the 38,450 price level. However, the market edged lower on Friday as President Trump ordered a review of reciprocal trade tariffs on countries that tax American imports. This threatens Japanese exports and has affected Japanese stocks as well.

Key Price Levels:
Resistance Levels: 38,500, 39,000, 39,500
Support Levels: 38,000, 37,500, 37,000

Japan 225 Remains Subdued

The Nikkei 225 market, as mentioned earlier, has moved off the baseline at the 38,450 price level. However, price action appears to be hitting resistance at the 39,500 level. As a result, headwinds pushed the market back below the 20- and 50-day Moving Average (MA) lines through Thursday and Friday.

Interestingly, the last price candle on the chart remains at the close of the previous session. At the same time, the Stochastic RSI indicator lines are rising steadily upward despite the observed downward retracement. Consequently, it appears that price forces are at a standoff.

Nikkei 225 Bulls Mount Resistance

While the daily market chart for the Japan 225 shows that price action has slipped lower and the ongoing session has kept the market stagnant, the 4-hour chart indicates that upside forces are attempting to push the market higher. This can be observed through the appearance of the last price candle on this chart.

The last two price candles have appeared below the convergence of the 20- and 100-day MA lines. However, this convergence currently appears more sideways. Additionally, the Stochastic RSI lines are converging in the oversold zone for a potential crossover. Should this occur, price action may proceed toward the 39,500 mark and beyond.

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