Introduction
Nikkei 225 futures continue consolidating after an impressive rally throughout the second quarter. Since our previous analysis, the market has remained inside its rising trend channel, although momentum has slowed as buyers struggle to push price to fresh highs.
The market did break out of the uptrend channel, and NKD is up 150% since its low in April 2025. There really is no sign of it slowing down either, so for today’s technical analysis, we are going to look for any long trades that are available.
Let us know what your thoughts are in the comment section below, and receive a 10% discount code by contacting our support team via live chat.
Nikkei Futures Trend Analysis
Momentum Is Cooling, But Buyers Still Control The Trend
Lets take a closer look at the price action on a shorter time frame.
Price action is respecting an uptrend on the 4-hourly chart, with each retracement being bought up. It is a very difficult market to look for shorts. Bulls can loko for buys off the middle of the channel, where price action is now, or off the low of the channel.
Trend Structure Remains Healthy
| Scenario | Estimated Probability |
|---|---|
| Bulls hold mid-channel line and price rallies to 73,000 | 60% |
| Price break below mid line and tests lower end of channel | 40% |
Key Support and Resistance Levels
Major Resistance Levels
- 71,000 recent high
- 72,000
- 74,000
Major Support Levels
- Rising trendline near 68,500–69,000
- 64,825 (50-day moving average)
- 55,344 (200-day moving average)
Nikkei Possible Trades
Bullish Continuation Trade
Traders could buy at the midline, expecting it to hold as support, keeping a tight stop just below.
Wait it out trade
Traders can wait it out to see if price drops to test the lower end of the 4 hourly channel before initiating buys.
This analysis is provided for educational and informational purposes only and should not be considered financial or trading advice. Trading futures, forex, and other leveraged financial instruments carries a high level of risk and may not be suitable for all investors. Past performance is not indicative of future results. Before making any trading decisions, conduct your own research, assess your risk tolerance, and consult with a qualified financial advisor if necessary.
