Japan 225 Unwind Pauses at Known SupportThe Japan 225 contract has spent the past three sessions partially unwinding the sharp rally sparked by Japan’s trade agreement with the United States last week, leaving price resting on a known support level. Near-term price action may determine whether bullish or bearish setups hold the upper hand.
If price holds 40162, longs could be established above with a stop beneath for protection, targeting a move back to last week’s high of 42070. Alternatively, a break and hold beneath 40162 would flip the setup, allowing shorts to be established below with a stop above for protection. Uptrend support sits today at 40000, making that an obvious target.
Momentum indicators remain mildly bullish despite the pullback, favouring upside over downside. However, with this setup, price action should carry more weight.
Good luck!
DS
