Nikkei 225 Wave Analysis – 12 August, 2022

• Nikkei 225 approaches key resistance level 28640.00

• Likely to correct down to support level 28400.00

Nikkei 225 index today approached the key multi-month resistance level 28640.00, which stopped the sharp upward impulse wave (A) at the end of March, as can be seen below.

The resistance zone near the resistance level 28640.00 was strengthened by the upper daily Bollinger Band.

Given the strength of the resistance level 28640.00 and the overbought daily Stochastic, Nikkei 225 can be expected to correct down toward the next support level 28400.00 (previous monthly high from June). If the index breaks above 28640.00 – Nikkei 225 can then rise to the next resistance level 29000.00.