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LWby u/lwalsh·17hAnalysis

Nikkei pullback - potential support around 67k?

The Nikkei, after that monster run, is finally seeing some meaningful profit-taking. We've dropped hard today, currently sitting around 69299.81, down over 4%. Looking at the daily chart, the prior consolidation range lows from early February, around 67,000-67,500, could act as a significant re-test zone. That area also aligns roughly with the 50-day moving average, which is still trending upwards but could offer dynamic support.

I'd give it a 60% probability we see a test of that 67,000-67,500 region before the end of next week. The reason for the slight bullish lean on that probability is the sheer speed of this recent rally; a healthy correction to a prior demand zone before resuming the uptrend makes a lot of sense technically. Failure to hold that area would obviously open up a deeper pullback, but for now, that's my focus area.

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