Japan 225 (NIKKEI 225) Sets Sail Towards Higher Ground

Ever since the Japan 225 market plunged to the support at the 30,550 price level, it has been almost smooth sailing to higher price levels. The futures market recently breached the resistance at the 49,000 price level and has kept on going higher and higher throughout the week.

Key Levels

Resistance: 50,000, 51,000, 52,000

Support: 49,000, 48,000, 47,000

NIKKEI Stays the Course Northwards

The Japan 225 market looks not ready to pull the brakes as its price action keeps soaring. The market breached the 49,000 price level and has continued northwards, seemingly locking its target at the next psychological resistance level.

Also, price action keeps appearing above the 9-day Exponential Moving Average (EMA) line. At the same time, the bearish lines of the Stochastic Relative Strength Index (SRSI) have not risen upward significantly on the daily chart. Technically, this seems to suggest that the upside movement in the market has a strong base.

Japan 225 Price Upside Movement Looks Thinned Out

By viewing the NIKKEI 225 market on a 4-hour price chart, one can see that price action seems to have started consolidating. What’s more, the market closed in the red. Nevertheless, price activity remains above the 9-day EMA curve.

Likewise, the SRSI indicator lines have their terminals now dragging sideways at the 100 level of the indicator. While market participants may muse over the flat motion of the market at this point, the ongoing positioning of price action above the 9-day EMA still keeps the market on an overall bullish outlook toward the 50,000 price level.

Make money without lifting your fingers: Start trading smarter today