Japan's Nikkei index recorded its highest close in three weeks in a broad-based rally

Japanese stock markets witnessed the previous period cautious about the news related to tariff increases under the incoming Trump administration, but the Japanese Nikkei index rose strongly this week to record on Monday the highest close in three weeks, as heavy chip stocks led a broad-based rally, especially after Japan avoided imposing broader restrictions on the chip industry in the United States, easing concerns about the possible effects on local technology companies.

The Nikkei ni225 index closed up almost 2%, and Japan's main technology stocks also followed suit.

The gains outpaced Chip Stocks, with 197 of the 225 stocks in the Nikkei advancing as investors snapped up stocks, while 25 stocks fell. Three shares were not traded.

Artistically:-

The Japanese Nikkei is trying to complete the shown harmonic models, the shark model and also the Crab model.

These models are completed near the display levels with a downtrend on the four-hour frame, which is centered near the levels of 39900 to 40100.

It is possible that before ascending to complete the harmonic, a corrective pullback will fall near the levels of 3900 and around, especially after the previous two candlesticks closed, a reversal suggests some corrections and then an ascent to complete the harmonic, from which we can start thinking about selling to target the levels of 39000 and then 38000.

This scenario fails to break through the 40300 levels upwards.