Japan 225 (NIKKEI 225) Uptrend Sees a Brief Consolidation Period

While technical indicators largely maintain that bullish momentum in the Japan 225 remains active, it can also be observed that the market is currently in a consolidation phase. Fundamentally, this appears to be a lingering effect of the easing geopolitical tensions in the Middle East, as several stocks and futures are exhibiting dampened momentum.

Key Levels

Resistance: 40,000, 42,500, 45,000

Support: 39,000, 36,500, 34,000

NIKKEI Bulls Are Holding Their Ground

On the Japan 225 daily chart, price activity has shown signs of consolidation since the previous session. Nevertheless, bullish forces have remained in control, as suggested by the shape and color of recent price candles.

The Bollinger Bands (BB) indicator is slightly tilted upward, with price action hovering near the upper band—indicating that the bullish bias is still intact. However, due to reduced volatility, the Moving Average Convergence Divergence (MACD) lines are seen converging above the equilibrium level. While the market may seem subdued, the MACD’s position above the baseline still reflects an overall positive outlook.

Japan 225 Appears to Be Cooling Off

On the 4-hour chart, the Nikkei market shows price activity with a hovering characteristic, reflecting a lack of decisive direction. Price action remains slightly below the middle band of the BB indicator, while the upper and middle bands are now appearing narrower than before—signaling a squeeze and low volatility.

Additionally, the MACD lines are still slightly above the equilibrium level. Although this appears to be a temporary slowdown, technical indicators continue to suggest that bullish momentum could soon resume. If that happens, price activity may break above the 40,000 mark and potentially target the 42,500 resistance level.

Make money without lifting your fingers: Start trading smarter today