Nikkei 225 Chart Analysis (Apr 21) | Three Inside Up Confirms Reversal, 59,349
The following technical analysis is based on data as of April 21, 2026.
The Nikkei 225 closed at 59,349.17 yen on April 21, advancing 524.28 yen (+0.89%) for a third consecutive session. The session ran open 59,031.51, high 59,611.91, low 59,004.76, close 59,349.17—a midsize bullish candle. The three-candle sequence of 4/17 long bearish, 4/20 small bullish (spinning top), and 4/21 midsize bullish completes the three inside up reversal continuation pattern.
■ Technical Indicators: Current Position
Moving averages: SMA5 58,860.51, SMA25 54,949.45, SMA75 54,709.77, SMA200 49,049.00. The closing price of 59,349.17 sits above all averages including SMA5, with perfect order intact. SMA25 deviation +8.01% and SMA75 deviation +8.48% indicate intensifying overheating.
RSI reads 64.37, up from yesterday's 62.83 and approaching the 70 overbought zone. MACD: 1,300.74 / signal 747.20 / histogram 553.54—bullish expansion at near-yesterday levels. Ichimoku: tenkan 57,725.57, kijun 55,123.51, senkou A 56,424.54, senkou B 55,123.51. Cloud is thick bullish with price well above—three-fold bullish fully established.
■ Bollinger Bands and Volatility
Upper 60,628.15, middle 55,382.81, lower 50,137.46, bandwidth 18.94% (vs prior 18.47%). Today's close of 59,349 sits 1,279 yen below the upper band—still some distance to +2 sigma. Band walk resumption requires a move into the 60,000s.
■ Chart Pattern Analysis: Three Inside Up
Today's candle completes a three inside up pattern. Components: (1) 4/17 long bearish (open 59,255.09, close 58,475.90, body 779.19); (2) 4/20 small bullish (open 58,821.16, close 58,824.89), body fully contained in (1)—forming the bearish harami; (3) 4/21 midsize bullish (open 59,031.51, close 59,349.17), close above (1)'s open at 59,255.09—the third-candle confirmation triggers. Three inside up is a reversal continuation completed by a confirmed breakout from the harami; Bulkowski's data shows higher-than-average target reach in the breakout direction. Chart Master's pattern detail page covers formation conditions and follow-through behavior.
■ Support and Resistance Levels
The 60-day range spans 50,558.91 to 59,688.10. Today's close sits at 96.29% of the range, near the very top. Resistance: 59,611 (today's high), 4/16 high at 59,688, psychological 60,000, then 61,000 / 62,000. Support: 59,000 round number, SMA5 at 58,860, 4/17 low at 58,475, pivot support at 59,031. Fibonacci 100% at 59,688—a break opens blue-sky territory.
■ Volume and Market Sentiment
Today's volume of 129.5 million versus the 20-day average of 146.4 million yields a 0.88x ratio—light. The three inside up completing without volume expansion lowers signal reliability somewhat. Multi-timeframe stays daily / weekly / monthly all strong uptrend with full alignment intact.
■ Market Catalysts and Environment
The three inside up suggests reversal continuation, but 4/16 high at 59,688 is the immediate key level. Order book pressure at this line will decide between fresh highs and a double top. FX, U.S. markets, and domestic earnings momentum remain checkpoints.
■ Outlook and Scenarios
Bullish: A volume-backed break above 59,688 opens psychological 60,000 as the next target—a round-number trigger that attracts fresh buying. Bearish: Loss of 59,000 plus 58,475 (4/17 low) invalidates the pattern; an SMA5 break compounds the correction. Neutral: 58,475-59,688 consolidation; multi-timeframe bullish alignment is preserved.
■ Summary
April 21 three inside up completion lights up the reversal continuation signal. Key levels: upside 59,688 / 60,000, downside 59,000 / 58,475. The biggest checkpoint is a volume-backed new high.
* This article provides information based on technical analysis and does not constitute a recommendation to buy or sell any specific security. Investment decisions are your own responsibility.