Following the sharp decline in the Nikkei 225, ¥57,000 ± ¥1,000 and ¥50,000 ± ¥2,000 were identified as important downside support levels. EPS is rising, while PER has fallen to the 14x range.
The article identifies ¥57,000 ± ¥1,000 and ¥50,000 ± ¥2,000 as the key downside support levels for the Nikkei 225. EPS has been gradually rising, while the decline in PER to the 14x range is cited as one indication that the market is undervalued. From a long-term chart perspective, the April 2025 low was ¥30,792, and the 50% retracement level was ¥51,812, which is considered to coincide with a level corresponding to the monthly Ichimoku base line.
As short-term levels, the weekly 20-week Bollinger Band -3σ level was approximately ¥57,256 and the upper cloud boundary was approximately ¥56,598, with key levels concentrated in the ¥56,020–¥57,180 range. The recent sharp decline has raised the possibility of a double top formed by the June and October highs. Downside targets cited include ¥58,410 based on the N calculation, ¥50,100 based on the V calculation, and ¥48,070 based on the E calculation.
The article indicates that another decline may occur after the rebound runs its course, concluding that the area around ¥50,000 ± ¥2,000 could be a level at which to prepare for further weakness. It also touches on the all-time high of ¥72,831 reached in June 2026, citing February 2027 and April 2028 as potential turning points ahead.