Japan 225: Breakout Watch as Tariff Cut Fuels RallyJapan 225 CFDFOREXCOM:JP225FOREXcomThe Japan 225 contract is ripping higher today on a trade deal being reached between the U.S. and Japan, including the apparent lowering of auto tariffs to 15%. The price has already bounced strongly from uptrend support established in May, putting a potential retest of the June 30 high of 40854 on the cards. With momentum indicators perking up—pointing to building bullish momentum—the case for a topside break is improving. If the price can break and hold above the June 30 high, watch for a potential run towards 41000—a level that saw plenty of action back in 2024. It looms as a decent level to build setups around. If the price breaks and holds above 41000, consider establishing longs with a tight stop beneath the level for protection. 41600 and 42480 screen as potential targets, depending on desired risk-reward. While the setup could be flipped if the price stalls beneath 41000, just how much downside would be forthcoming given the current mood is questionable. Good luck! DS