Chart of the day

Nikkei is breaking above the critical medium-term resistance of 33260. A break above this level opens one more possible upside swing to 35000. Now only a break below 33200 could lead to an invalidation of an immediate upside extension and could lead to a pullback into 31200 support.

I see this still as a long-term fifth upside wave which is not finished. We need to see a clear confirmed break below 33200 for the upside extension to be invalidated and the fifth wave to be possibly marked completed but the probability for that is low.

Long trades could be opened here with a stop loss below 33000. Short trades should be opened in the case of a break below 31200. These are a key resistance/support level so use small sizes and tight stops.