The Japan 225 market saw a sudden regression last Thursday. However, with fading hopes of a Fed rate cut, the market attempted to rebound toward the close of the week. Nevertheless, price activity in this market continues to reflect strong bearish sentiment.
Key Levels
Resistance: 50,000, 52,000, 54,000
Support: 48,000, 46,000, 44,000
NIKKEI Stays Green but Contracts Below Key Levels
Thursday’s trading activity in the Japan 225 market pushed strongly below the 9-day Exponential Moving Average (EMA) line. However, the closing session is represented by a green yet doji-like price candle.
Similarly, the Stochastic Relative Strength Index (SRSI) indicator lines have completed a downward crossover below the 20 threshold of the indicator. The developing lines of the indicator have continued on a bearish path, which sets a clearly bearish tone in this market.
Japan 225 Hugs the 9-day EMA Curve
The last three price candles on the NIKKEI 225 4-hour market are red ones and have edged below the 9-day EMA curve. Meanwhile, the SRSI indicator lines can be seen rising steadily upward from the oversold region.
While this may seem conflicting, the terminal part of the SRSI appears to be diverging as it rises toward the overbought zone of the indicator. Although this could trigger some upward movement, it may still not produce significant progress toward the 52,000 price level.
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