The Japan 225 index has been in a slightly bullish tendency over the last two-and-half months, hovering above the strong 200-day simple moving average (SMA). The RSI, in the positive territory, is pointing north, while the MACD, above the zero level, is moving horizontally and confirming the recent weak momentum on price action.
Should the price stretch higher, the 23,445 level which the bulls were unable to break in the preceding week could provide immediate resistance. Moving higher, the focus will shift to the 24,178 area, taken from January 17, while higher still, a violation of this level would increase speculation that the bullish phase remains intact hitting the 24,472 barrier, registered back in September 2018.
In the alternative scenario, traders would be eagerly looking for a break below the 50-day SMA 22,669 to increase selling orders. If that is the case, the sell-off could last until the 200- and 100-day SMA, which stand slightly above the 21,720 support level. If bearish forces appear even stronger, 20,858 is another support to keep in mind.
To sum up, a bullish action above the six-month high of 23,445 would turn the bigger picture more positive, increasing the distance above the longer-term MAs as well.
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