Nikkei 225 Chart Analysis (Apr 22) | Three White Soldiers-Like Pattern at 59,585, Near All-Time High
The following technical analysis is based on data as of April 22, 2026.
The Nikkei 225 closed at 59,585.86 yen on April 22, adding 236.69 yen (+0.40%) for a fourth consecutive session. Open 59,104.11, high 59,708.21, low 59,005.48, close 59,585.86—a bullish candle. The three consecutive bullish candles of 4/20, 4/21, and 4/22 form a three white soldiers-like pattern, bringing the index to within striking distance of the 4/16 high at 59,688.
■ Technical Indicators: Current Position
Moving averages: SMA5 59,150.83, SMA25 55,184.87, SMA75 54,830.56, SMA200 49,149.01. The close of 59,585.86 sits above all averages with perfect order intact. SMA25 deviation +7.97% and SMA75 deviation +8.67% indicate continued overheating.
RSI reads 65.07, up marginally from 64.37 with the 70 overbought zone now within five points. MACD: 1,384.81 / signal 874.72 / histogram 510.09—bullish expansion intact. Stochastic %K 98.20 / %D 94.18—fully overbought. Short-term overheating is unmistakable; profit-taking pressure is elevated. Ichimoku: tenkan 57,970.49, kijun 55,133.56, senkou A 56,552.03, senkou B 55,133.56—thick bullish cloud, price well above, three-fold bullish intact.
■ Bollinger Bands and Volatility
Upper 61,167.59, middle 55,674.62, lower 50,181.65, bandwidth 19.73% (up from 18.94%). Volatility remains elevated. Today's close of 59,585 sits 1,582 yen below the upper band—still positioned closer to the middle.
■ Chart Pattern Analysis: Three White Soldiers-Like
The three consecutive bullish candles of 4/20, 4/21, 4/22 form a three white soldiers-like configuration. Closes step up: 4/20 = 58,824.89, 4/21 = 59,349.17, 4/22 = 59,585.86, with each open above the prior close—gap-up continuation through the sequence. Departure from textbook form: the 4/20 body of 3.73 yen is extremely small (a spinning top), so this is not a pure three-medium-bullish setup—but the three-day rising-close structure with bullish dominance honors the spirit of the three white soldiers. Bulkowski's data shows the pattern carries high continuation rates, but appearances in overheated regions can also trigger near-term pullbacks. Chart Master's pattern detail page distinguishes textbook from look-alike formations.
■ Support and Resistance Levels
The 60-day range spans 50,558.91 to 59,708.21 (today's high). Today's close sits at 98.66% of the range, near the absolute top. Resistance: 59,708 (today's high), 4/16 high at 59,688 (essentially at the same level), psychological 60,000, 61,000. Support: 59,000, SMA5 at 59,150, 4/17 low at 58,475, SMA25 at 55,184. Volume-backed breakout from this 59,688/59,708 cluster is the key.
■ Volume and Market Sentiment
Today's volume of 145.7 million versus the 20-day average of 147.0 million yields a 0.99x ratio—at average. Flat volume during a four-day rally is concerning—genuine institutional buy participation appears restrained. The three white soldiers pattern ideally completes on rising volume; flat volume here suggests upside energy is approaching its limit. Multi-timeframe stays daily / weekly / monthly all strong uptrend with full alignment.
■ Market Catalysts and Environment
With 4/16 high of 59,688 essentially in reach and psychological 60,000 in the spotlight, expectations are elevated. Stochastic at 98 makes overheating clear. Domestic earnings season responses, overseas market action, and FX direction will dominate near-term moves.
■ Outlook and Scenarios
Bullish: Volume-backed clear break above 59,708 puts 60,000 within striking range, then 61,000 / 62,000. Bearish: Three white soldiers in overheated regions can trigger sharp reversals; a break below 59,000 plus 58,475 (4/17 low) signals a corrective phase. Neutral: 59,000-59,700 consolidation, awaiting a volume-backed advance after overheating relief.
■ Summary
April 22 completes a three white soldiers-like pattern, marking the final approach to an all-time high. Key levels: upside 59,708 / 60,000 / 61,000, downside 59,000 / 58,475. With stochastic overheating and flat volume in mind, whether the psychological 60,000 falls will set the next direction.
* 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.