Is Japan's Nikkei 225 in a Bull Run?

Ultima Markets presents a thorough and insightful breakdown of the Nikkei 225 for November 13, 2025.

Nikkei225 Chart Says Bulls Are Just Warming Up

The broader trend remains unmistakably bullish, with the long-term trajectory firmly intact and showing little indication of reversing anytime soon. The current phase of sideways movement appears to be a brief consolidation, resembling a classic “bull flag” pattern, often seen as the market gathering momentum for another upward push. Although a deeper retracement can’t be ruled out, the overall bias continues to favor the upside.

Key Levels

The short-term purple moving average, hovering near 50,800, acts as immediate dynamic support and serves as the first key level for defending the uptrend. Prices are currently testing this area. The recent swing low around 50,000 also forms a crucial horizontal support zone in the near term.

Further down, the medium-term black moving average near 46,800 represents a stronger support base. A move toward this level would imply a more pronounced correction, but as long as the long-term bullish structure remains intact, such a dip could offer a strategic buying opportunity.

Breakout or Breakdown Coming Next?

The recent rebound from the lows shows encouraging momentum, though the subsequent slowdown and tight trading range indicate a lack of conviction from both buyers and sellers. The market currently appears to be in a consolidation phase, awaiting a fresh catalyst to determine its next directional move.

In the near term, sideways action remains the most probable outcome. However, the fact that prices continue to hold above the rising long-term moving average gives the bulls a slight edge when viewed over a broader timeframe.

Breakout Scenarios

A confirmed move and close above the nearby resistance level at 51,550 would mark an early signal of renewed bullish momentum. This could open the door for a retest of 51,900, with the potential to extend toward the major high near 52,600. On the downside, a break and close below the cluster of moving average supports around 51,000 would be the first warning sign of weakness.

A clearer bearish shift would be confirmed if price falls beneath the key short-term support at 50,600, which would indicate that the recovery has lost traction and potentially trigger a move toward the broader support zone near the green moving average and the 49,700 level.

Bulls Hold the Edge as Market Awaits Its Next Big Catalyst

Price action remains tightly contained between a well-defined support base and a solid resistance cap. Until the market breaks convincingly out of this range, choppy sideways trading is expected to persist. However, the consistent defense of the long-term green moving average and the upward slope of the Stochastic indicator give a slight bullish bias, hinting at a possible move toward the resistance zone in the short term.

Bullish Scenario

A confirmed 30-minute close above the key resistance level at 51,530 would signal a breakout from consolidation. Such a move could attract fresh buying interest and reinforce the continuation of the broader uptrend that has been in place since November 7.

Bearish Scenario

Conversely, a decisive 30-minute close beneath the critical support area between 50,950 and 51,000 would serve as a strong bearish trigger. This would undermine support provided by the green moving average and could prompt a swift decline toward the next support level near 50,500 or potentially lower.

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