Key Points
- Nikkei225 opened higher for a fifth consecutive session, supported by yen depreciation and gains in banking stocks.
- Export-related shares benefited from USD/JPY trading near the 158.70 area, boosting sentiment toward Japanese companies with overseas exposure.
- The index is approaching key resistance near the 66,600 level, where the 75-day moving average may limit further upside.
- Traders continue monitoring oil as higher crude prices could increase inflation concerns and future policies.
Market Move
Nikkei225 continued its upward momentum on September 25, opening at 65,639.62 and rising more than 700 points during the session. The index reached an intraday high near 66,388, with buyers pushing the price toward the 66,400 resistance zone.
However, momentum slowed as buyers faced resistance. Trading volume increased during the breakout phase, suggesting stronger market participation, but price has since moved sideways near the highs.
Why Traders Are Watching
Nikkei225’s current winning streak is due to multiple factors. The yen’s weakness has supported Japanese exporters by improving overseas earnings expectations. Traders are watching whether continued yen weakness can provide further support for Nikkei225.
Japanese financial stocks have also remained a key driver after the Bank of Japan raised its policy rate to 1.25%. Higher interest rates may affect bank profitability expectations, keeping financial shares in focus.
Stocks from different sectors, such as mining and pharmaceutical stocks, have also boosted the market’s strength.
Key Trading Levels
| Level | Price Area | Significance |
| Resistance 1 | 66,400 | Immediate resistance near the current session high |
| Resistance 2 | 66,600 | Key resistance around the 75-day moving average |
| Resistance 3 | 67,000 | Psychological upside target |
| Support 1 | 66,000 | Short-term breakout support and key pivot |
| Support 2 | 65,800 | Recent consolidation area |
| Support 3 | 65,500 | Intraday downside support zone |
The index is currently testing resistance around 66,400, where recent highs have attracted some profit-taking. The 9-period moving average continues to slope higher, suggesting that short-term momentum remains supportive as long as price stays above nearby support levels.
Bullish and Bearish Setups
| Scenario | Conditions | Potential Outcome |
| Bullish Setup | Price holds above 66,000 and breaks 66,400 | Nikkei225 may target 66,600 and 67,000 |
| Bearish Setup | Price falls below 66,000 | Index may retest 65,800 and 65,500 support |
For a bullish scenario, a break and sustained move above 66,400 could signal that buyers are attempting to challenge the 66,600 resistance zone, with further upside potential toward 67,000. Continued yen weakness and strength in financial stocks may provide additional support for the bullish scenario.
For a bearish setup, a rejection from the 66,400–66,600 resistance zone could trigger short-term profit-taking. If price falls below 66,000, momentum may weaken and shift attention toward the 65,800 and 65,500 support levels. A break below these areas would suggest that buyers are losing control of the current upward move.
Disclaimer
The price levels and market scenarios above reflect the author’s assessment at the time of writing. They do not represent financial advice or an official recommendation from VT Markets. Traders should conduct their own analysis and manage risk carefully.
Nikkei225 Prediction
Future market direction will likely depend on whether external drivers continue to support Japanese equities.
The yen remains a key driver. Continued yen weakness could support Nikkei225 by improving earnings expectations for export-heavy companies, but further yen depreciation may influence Japan’s rate policy, which could create volatility.
Rising global bond yields remain a risk factor for equity markets, as higher borrowing costs can reduce risk appetites. Traders will monitor U.S. Treasury yields and inflation expectations for signals on future monetary policy.
Oil prices are also important for Japan, which relies heavily on energy imports. Higher crude prices could increase inflation concerns and pressure corporate margins, while easing oil prices may improve market sentiment.
Trade Nikkei225 with VT Markets
Access global market opportunities through advanced trading platforms, competitive trading conditions and flexible tools designed for active traders.
With VT Markets, you can trade Nikkei 225 CFDs alongside forex, commodities and shares on MetaTrader 4 and MetaTrader 5, with transparent contract specifications and tools to manage leveraged positions properly.
Open an account, start a demo, and build the process before you scale the size.
Frequently Asked Questions
What is driving Nikkei225 higher?
Nikkei225 has been supported by yen weakness, stronger financial stocks and improved sentiment following gains in U.S. technology shares.
What is the key resistance level for Nikkei225?
The key resistance zone is around 66,400 to 66,600, where recent highs and the 75-day moving average are located.
What is the key support level for Nikkei225?
The first support level is around 66,000, followed by 65,800 and 65,500.
How does a weaker yen affect Nikkei225?
A weaker yen can support Japanese exporters by increasing the value of overseas earnings when converted back into yen.
What indicators are traders watching for Nikkei225?
Traders are monitoring USD/JPY, Japanese equities, global interest rates, U.S. stock performance and technical levels on the Nikkei225 chart.
Start trading now — click here to create your real VT Markets account.
