The Japan 225 contract is ripping higher today on a trade deal being reached between the U.S. and Japan, including the apparent lowering of auto tariffs to 15%.
The price has already bounced strongly from uptrend support established in May, putting a potential retest of the June 30 high of 40854 on the cards. With momentum indicators perking up—pointing to building bullish momentum—the case for a topside break is improving.
If the price can break and hold above the June 30 high, watch for a potential run towards 41000—a level that saw plenty of action back in 2024. It looms as a decent level to build setups around.
If the price breaks and holds above 41000, consider establishing longs with a tight stop beneath the level for protection. 41600 and 42480 screen as potential targets, depending on desired risk-reward.
While the setup could be flipped if the price stalls beneath 41000, just how much downside would be forthcoming given the current mood is questionable.
Good luck!
DS
The price has already bounced strongly from uptrend support established in May, putting a potential retest of the June 30 high of 40854 on the cards. With momentum indicators perking up—pointing to building bullish momentum—the case for a topside break is improving.
If the price can break and hold above the June 30 high, watch for a potential run towards 41000—a level that saw plenty of action back in 2024. It looms as a decent level to build setups around.
If the price breaks and holds above 41000, consider establishing longs with a tight stop beneath the level for protection. 41600 and 42480 screen as potential targets, depending on desired risk-reward.
While the setup could be flipped if the price stalls beneath 41000, just how much downside would be forthcoming given the current mood is questionable.
Good luck!
DS
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.