Buyers likely to support Nikkei futures (NKD) pullback, eyeing 72,870 extension

Nikkei Futures (NKD) continues to demonstrate remarkable strength as it extends into new all‑time highs, reinforcing the bullish sequence that began from the March 23, 2026 low. This upward momentum favors additional gains in the near term. From the March 23 low, wave 1 concluded at 63,880, followed by a corrective pullback in wave 2 that ended at 59,352. The internal subdivision of wave 2 unfolded as a zigzag, a common corrective structure, before the Index resumed higher. The decisive break above the wave 1 peak confirmed that wave 3 had begun, signaling continuation of the impulsive advance.

From wave 2, the initial leg wave (i) ended at 62,075, while the subsequent pullback in wave (ii) found support at 61,040. The rally extended further, with wave (iii) reaching 65,695, before a modest dip in wave (iv) concluded at 64,650. The final leg, wave (v), advanced to 66,520, completing wave ((i)) of a higher degree. At present, a corrective phase in wave ((ii)) is unfolding, designed to retrace the cycle from the May 20, 2026 low. This correction is expected to provide a healthy consolidation before the broader rally resumes.

In the near term, as long as the pivotal support at 59,352 remains intact, the pullback should ultimately find support within the typical 3, 7, or 11 swing sequence. Consequently, the broader outlook continues to favor further upside once the current consolidation completes, maintaining the bullish trajectory established since March.

Nikkei Futures (NKD) 60-Minute Elliott Wave Chart

NKD_F Elliott Wave video: