Japan 225
Short
Updated

Nikkei 225 (J225) Bearish Reversal | 1W Timeframe

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J225 (Nikkei 225) is showing multiple rejections near the 40,741 resistance level, indicating a possible downtrend formation. The price is currently testing the 38,333 support, and a breakdown here could lead to a significant bearish move.

🔹 Resistance: 40,741 (Rejection Zone)
🔹 Bearish Confirmation: Break below 38,333
🔹 Key Targets: 36,702 → 35,306 → 33,828 → 30,401

If this setup plays out, a lower high, lower low structure could be in motion, pushing J225 lower in the coming weeks. However, this is not financial advice—just an educational market analysis. Manage risk and always do your own research before making any trades! 🚨
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As of February 14, 2025, the Nikkei 225 (J225) closed at 39,149.43, experiencing a decline of 0.79%.

In our previous analysis, we identified a key resistance level around 40,741, anticipating a potential bearish reversal upon rejection at this zone. The recent price action shows the index has retreated from highs near this resistance, aligning with our initial bearish outlook.

Key Observations:

Resistance Level: 40,741
Current Price: 39,149.43
Recent High: Approximately 39,543.93 on February 14, 2025

The recent decline is partly attributed to a sharp rebound in the yen, which has weighed on Japan's export-driven industries.

Given the proximity to the resistance level and recent bearish price action, traders should monitor for further signs of rejection or a potential breakdown. A confirmed move below the 38,333 support level could validate the bearish setup, while a decisive break above 40,741 may invalidate it.

This analysis is for educational purposes only and does not constitute financial advice. Always conduct your own research and risk management before making trading decisions

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