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Japan225 is currently respecting the 49135 JPY support level, showing signs of strong buyer defense. Price action confirms a higher low formation, with bullish candles emerging from this zone. If price holds above 49135 and breaks recent intraday resistance, momentum could accelerate toward 49300 → 49500 JPY, opening the path for a bullish extension.
This support zone has acted as a launchpad in previous sessions, and current structure suggests a high probability of continuation — provided price doesn’t close below 49100.
🔹 Trading Strategy
Buy Setup:
Enter long above 49135 JPY with confirmation.
Targets: 49300 → 49500 JPY
Stop-loss: below 49100 JPY
Sell Setup:
Only consider short if price breaks and holds below 49100 JPY
Targets: 48950 → 48800 JPY
Stop-loss: above 49135 JPY
Bias: Bullish as long as price holds above 49135.
Japan225 is currently trading near 49,077 JPY, showing signs of a short-term bullish recovery after a recent dip. Price action reveals a potential higher low formation, with buyers stepping in aggressively from the 48,950–49,000 JPY zone. Recent candles show strong bullish bodies and long lower wicks, indicating demand and rejection of lower prices.
However, the range between 49,000–49,100 JPY remains a trap zone, where volatility spikes and false breakouts are common. Traders should avoid impulsive entries here and wait for confirmation outside this band.
🔹 Trading Strategy
Buy Setup:
Enter long above 49,120 JPY with a strong candle close.
Targets: 49,300 → 49,500 JPY
Stop-loss: below 49,000 JPY
Sell Setup:
Enter short below 48,950 JPY if price breaks and holds under this level.
Targets: 48,700 → 48,500 JPY
Stop-loss: above 49,100 JPY
Neutral Zone (49,000–49,100 JPY):
Avoid trading in this range — high volatility and liquidity traps.
Wait for breakout confirmation before committing capital.
Buy Setup:
Enter long above 50,900 JPY with confirmation.
Targets: 51,200 → 51,500 JPY.
Stop‑loss: below 50,700 JPY.
Sell Setup:
Enter short below 49078 JPY if price holds under this level.
Targets: 48905 → 48900 JPY.
Stop‑loss: above 50,900 JPY.
Neutral Zone (50,700–50,900):
Avoid trading in this band — high volatility trap zone.
Wait for breakout confirmation before committing capital.
🔎 Price Action Notes
Current structure shows higher highs and higher lows, confirming bullish bias.
50,900 JPY is the breakout pivot; holding above it strengthens upside momentum.
50,700 JPY is key support; a breakdown here signals sellers regaining control
The Tankan Large Manufacturing Index came in at +14, which is below the expected consensus of +15. This constitutes a disappointment for the market, which was pricing in a slight improvement in business sentiment.
This fundamental disappointment aligns perfectly with and strengthens our Bearish / SELL technical strategy.
Trade Recommendation:
Wait for Technical Confirmation: Do NOT chase the initial volatility spike. Wait for the market to definitively commit.
Entry Trigger (High Conviction SELL): Execute the short trade if and when the JP225 index price closes a 3-minute candle below the technical support at 49,490.0. This breakdown confirms that the news-driven selling pressure has overcome the short-term buyers.
Target (TP): The first target for this move is the strong horizontal support at 49,430.0.
Risk/Accuracy: This is now a Very High Accuracy (9/10) setup, as both the fundamental news (disappointing Tankan) and the technical price action (breaking key support) are aligned for a downside move.
The Tankan Large Manufacturing Index is a High-Impact event.
Avoid: DO NOT enter new trades or hold large positions 5-10 minutes before the release.
Safety: REDUCE RISK by closing or trimming existing JP225 trades to protect against volatility (whipsaws/gaps).
Follow Rules: RE-ENGAGE with your technical breakout rules (49,590.0/49,490.0) only after the initial news volatility has subsided (wait for 2-3 clean 3-minute candles to close). News dictates the initial trend; technicals confirm the continuation.
Now buying pressure is high, and the market is showing signs of a potential upside move. Price is bouncing strongly from the support zone and forming higher lows, indicating buyers are taking control.
📊 Technical Outlook (Clean & Simple):
Strong buying pressure building from support
Price forming higher lows → bullish structure
Momentum increasing on the upside
If price breaks above resistance, further upside continuation is likely
Sellers are weakening, and market bias is shifting bullish