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The Nikkei 225 finished the day on a positive note, posting a 0.62% gain to reach 39,372.93. This uptick came as regional political tensions showed signs of easing, while strong corporate news further supported the market’s upward momentum.
The political situation in South Korea had initially weighed on investor sentiment, but the announcement of an impeachment motion against President Yoon Suk Yeol helped stabilise the situation. This motion follows widespread public outrage over Yoon’s controversial martial law declaration, which had sparked tensions both domestically and internationally.
While the vote is still pending, the market is optimistic that political stability will be restored, which helped boost sentiment in Japan.
Let’s take a look at the Nikkei’s movements.
Picture: The Nikkei showing price consolidation with potential bullish or bearish momentum, as seen on the VT Markets app.
From the chart, we’re seeing a neutral to bearish short-term phase, consolidating between 39,200 support and 39,700 resistance. Price action traders should watch for a break of either of these levels for a clearer direction.
If the market holds support, a potential move towards the 39,800 resistance could be expected, but failure to maintain support could push prices lower.
Despite the global uncertainty, the Nikkei 225’s strong performance reflects growing optimism around Japanese companies, which are showing resilience through strategic acquisitions and innovative financing solutions.
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Traders will be watching for further updates on the political situation in South Korea and the ongoing corporate moves within Japan as indicators of the market’s future direction.
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