Nikkei 225 Wave Analysis – 23 May 2023

• Nikkei 225 reversed from multiyear resistance level 30750.00

• Likely to test support level 30000.00

Nikkei 225 index recently reversed down from the multiyear resistance level 30750.00 (which reversed the index twice in 2021 as can be seen below).

The resistance level 30750.00 was strengthened by the upper weekly Bollinger Band and by the resistance trendline of the weekly up channel from the end of last year.

Given the overbought weekly Stochastic, Nikkei 225 index can be expected to fall further toward the next round support level 30000.00.