Nikkei 225 Chart Technical Outlook (JPN225) The Expanding Wedge keeps the focus on higher levels, Mixed and volatile price action has resulted in an Expanding Wedge formation being posted. This pattern keeps the focus to the upside with a break of 33,122 (trend of lower highs) resulting in a further rally to the ‘measured move’ target of 34,014.
We also have a 261.8% extension level located at 34,014. Using the Elliott Wave theory, a break of the previous swing high at 32,307 should result in an impulsive move higher towards 32,953, and the trend of lower highs.
Conclusion: The bias is bullish. We look for a further rally to eventually form a double top formation at 34,014.
Resistance: 32,307 (swing high), 33,122 (lower highs) 34,014 (measured move and 261.8% (
Support: 31,695 (bespoke support), 31,429 (demand zone), 31,251 (swing low).