On 20 August, the Nikkei 225 rebounded for the first time in 3 sessions, closing ¥890.27 higher than the previous day and returning above the 25-day moving average.
On 20 August, the Nikkei 225 rebounded for the first time in 3 sessions, closing ¥890.27 higher than the previous day and returning above the 25-day moving average.
Under the Ichimoku cloud analysis, the closing price rose above the lower edge of the cloud, suggesting that selling pressure was easing. The candlestick closed as a small bullish candle, while the tug-of-war between buyers and sellers continued.
However, a point of focus for market participants is that both the 25-day and 5-day moving averages continued to decline, suggesting an extended downtrend. On a weekly-chart basis, the index was pushed back below the 13-week moving average, leaving uncertainty over its future direction.
While the day's move can be viewed as a short-term market rebound, some market participants believe whether the rise will continue depends on developments ahead.