Chartbook: Chart JP Nikkei Update: Retracing January/April losses

Rebound from the 30795 support at the start of Q3 has seen gains retracing almost all of the losses from the January high to reach support turned resistance at the 38000/38400 area.

Consolidation here see prices tracing out an ascending triangle and bullish momentum from the April low suggest this giving way to further strength later. Higher will see room to the strong resistance at the 40000 figure and the 40400 high of December 2024. This area is expected to cap and give way to corrective pullback later. Break here, if seen, will clear the way for retest of strong resistance at 41087 high of March 2024 and extending to the 42426, July 2024 all-time high. Gains beyond this, if seen, will further extend of the underlying bull trend to the 44000 figure. 

Meanwhile, support is lowered to the 36000/35000 congestion area. This area now expected to underpin and limit corrective pullback. Break here will leave the way open for retest of support at 33850. Below this will return focus to the 30795 low and see room for deeper pullback to retrace 2008/2024 rally.