Nikkei 225 index price pushes toward 39,000 as bullish trend faces resistance test
Japan 225 index nears 39,000 amid bullish trend but faces resistance and slowing momentum
The Nikkei 225 index advanced toward 39,000 on June 24, with the current price at 38,790.56, continuing a strong rebound from its May lows. The rally has reclaimed key technical levels, lifting the index above descending resistance lines and toward a historically significant supply zone.
Highlights
- Nikkei 225 rebounds to 38,790, nearing multi-month resistance at 39,600
- Daily and 4H trend remains bullish, supported by higher lows and ascending EMAs
- Momentum signals tapering, suggesting a short-term pause or pullback may follow
However, analysts caution that while the broader structure remains bullish, momentum indicators are showing early signs of fatigue.
Trend structure and resistance zones
On the daily chart, the Japan 225 has completed a breakout from its multi-month falling channel, confirming a reversal with higher highs and higher lows since April. The recent upward move brought the index back above 38,000, a level that previously acted as a pivot for both support and resistance.
Nikkei 225 price dynamics (Source: TradingView)
Now, the index is testing the critical resistance band between 39,000 and 39,600, a zone that rejected price action on multiple occasions between late 2023 and early 2024. Unless bulls push decisively through this band, the current rally may face consolidation.
The 4-hour chart shows a clean trend supported by a rising support line near 38,050. As long as this trendline holds, the bullish structure remains intact. Technical indicators such as the Parabolic SAR and KST momentum also continue to support the uptrend.
Momentum shows signs of cooling
While trend indicators remain aligned, momentum signals are beginning to plateau. The 30-minute RSI has stalled below overbought levels at 59.85, and MACD histograms have started to flatten. Additionally, the True Strength Index and Momentum indicators on the daily chart are positive but softening.
These signs suggest a possible near-term pullback, particularly if price fails to close above 39,600. Immediate support lies around 38,400 to 38,050, a zone reinforced by clustered EMAs and short-term structure.
In previous coverage, we highlighted that the Nikkei 225 was approaching a breakout zone from a descending channel. The current rally confirms that bullish setup, though follow-through beyond 39,600 will be essential for a sustained move toward the all-time high area near 41,000.
