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Nikkei Futures (NKD) has extended to new all-time highs, maintaining a bullish momentum since the March 23, 2026 low. Technical analysis suggests a completed first wave (wave 1) ending at 63,880, followed by a corrective pullback in wave 2. Traders anticipate buyers will support this pullback, with the next target at the 72,870 extension level. The upward trend indicates strong institutional interest and potential for further gains in the near term.
For forex and global equity markets, this development highlights sustained bullish momentum in Asian equities, which could influence risk-on sentiment. Traders monitoring cross-asset correlations may see ripple effects in commodities and USD pairs as investors rebalance portfolios. The Nikkei's performance also reflects broader economic confidence in Japan, a key factor for international investors.
MENA investors should watch how this trend interacts with global macroeconomic data, particularly US-Japan interest rate differentials. The 72,870 level represents a critical technical target; a breakout could signal a new phase in the rally. Traders should also monitor volume and volatility metrics to assess the sustainability of this upward move.
