Chart of the day

Nikkei is in the long-term rising wedge just below 37000 most important resistance and a possible fifth wave finish. A break above this resistance is required for an upside continuation.

Only a clear confirmed break above 37000 will invalidate the downside reversal here. A confirmed break below the 33800 level will mean that we will have a new swing lower. Short-term a break below 36000 will lead to a downside reversal.

Short-term short trades could be opened here with a stop loss above 37600. Long Nikkei trades should be opened only upon a confirmed break above 37600. I am inclined to see an extension lower to 33800 for a test of key support.