Japan 225 (NIKKEI 225) Upside Recovery Slows Ahead of GDP Revision

The Japan 225 market has edged higher on the week. However, as soon as price action crossed a technical resistance, the chatter surrounding the GDP revision spooked investors into taking caution ahead of the data release. Let’s dive into the signals indicated by technical indicators below.

Key Levels

Resistance: 43,000, 45,000, 47,000

Support: 42,000, 40,000, 38,000

NIKKEI Keeps Its Base Above Key Levels

The Japan 225 market keeps hitting barriers from one point to another. The market had rebounded off support during the week. And after the market rose past the 9-day Exponential Moving Average (EMA) line, it hit another hard crust.

Albeit, one good thing is that price action has kept itself above the 9-day EMA curve at 42,649. Meanwhile, the Stochastic Relative Strength Index (SRSI) indicator lines are rising strongly upward from the oversold region. This aligns with the opinion that the downward rejection may just be noise, and the market may shake it off.

Japan 225 Keeps a General Bullish Stand

The NIKKEI 225 market maintains a striking stance. The last price candle on the 4-hour chart stays red. However, the mentioned price candle stays above the 9-day EMA curve as well. This shows a consistency that calls for careful consideration among bullish traders.

Interestingly, the SRSI lines seem to be moving too quickly as they fall sharply below the 80 mark at such a minimal price decline. In fact, price action stands above the 9-day EMA curve. Consequently, it appears price action may push its way through toward 45,000, as downward forces seem too weak at this point.

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