Japan 225 (Nikkei 225) Trends Slightly Lower

Japan’s economy experienced overall growth in Q4; however, the Nikkei 225 has not fully reflected this progress, likely due to sluggish consumer spending. Over the past week, price action has shown some gains, but headwinds have introduced notable setbacks.

Key Price Levels

Resistance Levels: 37,500, 38,500, 39,000

Support Levels: 37,000, 36,500, 36,000

Nikkei 225 Buyers Swoop in at 37,000

From a broader perspective, price action in the Japan 225 daily market has been trending lower despite closing the week in positive territory. However, it appears that buyers waited for prices to reach the technical support at 37,000 before entering the market.

This remains true despite price action exceeding all Moving Average (MA) lines. Additionally, the Stochastic Relative Strength Index (Stochastic RSI) lines have continued rising toward the 50 mark, aligning with a short-term bullish outlook. This suggests that further price increases may be on the horizon.

Japan 225 Eyes More Short-Term Gains

Looking ahead, price action has moved above the 20-day MA line, a crucial step for short-term gains. However, the latest price candle suggests strong resistance from downward forces, potentially limiting upside movement.

Nevertheless, the fact that the price has remained above the 20-day MA line suggests further upward potential. Additionally, the Stochastic RSI lines are still trending toward the 50 mark, reinforcing the likelihood of additional gains.

Given these conditions, targets at the 37,500 and 38,000 levels appear to be viable in the short term.

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