Japan 225 Index: Trendline Test Below Equal-Highs

  Published On: 16 Dec 2025, 10:16 AM | Lester Chua Chengyong, Dealer Key Entry Price Pivot(s):
  • 50,200
  Recommended Trade:
  • Long above 49,900
  • Take Profit at 51,140
  • Stop Loss at 49,720
  Alternative Case
  • Short at 50,190
  • Take profit at 49,380
  • Stop loss at 50,500
  Remarks:
  • For the Japan 225 Index, price is pulling back from an equal‑high resistance zone and is now sitting on/just above a rising trendline on the 4H chart, making this a key inflection area. A fair value gap (FVG) sits overhead (the boxed zone), which can act as a “magnet” for a rebound, but it can also become a supply area if price retraces into it and rejects.
 
  • Buy Scenario: A buy setup is favoured if the trendline continues to hold and price shows rejection (e.g., 4H close back above the immediate base after probing lower), suggesting dip‑buyers are defending the trend structure. In that case, the first upside objective is a rotation into the FVG (the boxed area), with follow‑through targeting the retest of the equal‑high resistance level.
 
  • Sell Scenario: A short opportunity develops if price trades back up into the FVG (boxed area) but fails to close above it, signalling that the imbalance is acting as supply rather than a continuation trigger. A more compelling confirmation comes if, after that rejection, price then closes below the rising trendline, which would indicate a break of the higher‑low structure and shift bias toward a deeper pullback. The target is then the previous swing low level at 49,380.
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