The Japan 225 (Nikkei) has rallied to a new all-time high. Technical analysis suggests its medium-term uptrend is intact, with key levels to watch.
Chart of the week: Japan225 (Nikkei)
We have featured the Japan 225 CFD Index (a proxy of the Nikkei 225 futures) in our prior "Chart of the week – Japan 225 potential of bullish breakout” published on 11 August 2025.
Since our last analysis, the Japan 225 CFD Index has shaped the expected bullish move and broken above the former 42,513 all-time high printed on 10 July 2024. It rallied by 8% to reach a new record high of 45,956 last Thursday, 18 September 2025.
Also, the Nikkei 225 managed to record a month-to-date positive return of 6.8% as of last Friday, 19 September 2025, ranked second behind South Korea’s KOSPI (9.6%), and surpassing the Nasdaq 100 (5.2%) (see Fig. 1).
Fig. 1: Month-to-date performances of major global benchmark stock indices as of 19 Sep 2025 (Source: MacroMicro)
Fig. 2: Japan 225 CFD Index medium-term trend as of 22 Sep 2025 (Source: TradingView)
Let’s now examine the latest price action developments on the Japan 225 CFD Index and highlight the key levels to watch from a technical analysis perspective.
Firstly, the Japan 225 CFD Index has continued to trade above the 20-day and 50-day moving averages. In addition, its recent price actions have oscillated within a minor ascending channel in place since the 2 September 2025 low of 41,688.
Secondly, the 4-hour RSI staged a firm rebound on Friday, 19 September 2025, after retesting its ascending support at the 50 level. This resilience signals that underlying bullish momentum remains well intact, keeping the medium-term uptrend in play.
Maintain the bullish bias with 44,135 as the key medium-term pivotal support for the next medium-term resistances to come in at 46,720/46,870 and 47,485/47,540 (Fibonacci extension cluster levels) (see Fig. 2).
However, a break below 44,135 invalidates the bullish scenario to expose the next medium-term supports at 43,210 and 42,513 (also the upward sloping 50-day moving average).
The information presented is historical information, and past performance is not indicative of future performance.
