Japan 225 (NIKKEI 225) Surges Toward the 42,000 Mark

The Japan 225 market rallied toward the end of the previous week, with price action testing the 42,000 level. Although the market has since pulled back below that threshold at the time of writing, current price activity still suggests that the bulls are not backing down.

Key Levels

Resistance: 42,500, 45,000, 47,500

Support: 40,000, 37,500, 35,000

NIKKEI Retains Favorable Position for Further Gains

Following a strong upward move in the Japan 225 market, a modest downward correction has occurred, bringing price action back below the upper limit of the Bollinger Bands (BB) indicator. The most recent price candle is green with a small body, indicating limited movement, yet the market remains well above the midline of the BB indicator and close to its upper boundary.

The BB indicator itself maintains an upward trajectory and continues to expand—an indication of ongoing bullish momentum. Similarly, the Smoothed Rate of Change (SROC) indicator remains above the equilibrium level, further affirming that bullish pressure persists.

Japan 225 Maintains Its Upward Trajectory

The NIKKEI 225 has dipped slightly below the upper boundary of the BB indicator. However, the latest green candlestick stands just above the midline of the BB indicator, suggesting continued strength.

At the same time, the BB bands are beginning to converge more rapidly, which could signal a period of consolidation or a potential breakout. Recent candlesticks have been small, but they’ve helped the market sustain its position above the BB midline. The SROC indicator line also remains slightly above the equilibrium level with a mild upward slope.

As such, traders can still look toward the 43,500 level as a possible upside target in the coming week.

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