Nikkei 225 wedge points to breakout riskJapan 225 CFDFOREXCOM:JP225davidscuttOur Nikkei 225 contract is coiling within what resembles a falling wedge pattern, raising the prospect of an eventual bullish breakout and retest of the record high. That would fit with the broader technical picture, with the price in a strong uptrend while continuing to hold above the key medium and longer-term moving averages, all of which have a positive slope. Of course, that's no guarantee we'll see a breakout, but traders should be alert to the risk. A sustained move above wedge resistance, preferably on a closing basis, would allow for longs to be set with a tight stop below the breakout level, targeting the record high at 73,520. 72,000 is a level of note in between, marking the swing high set on July 1. The oscillators are more neutral than bullish or bearish. RSI (14) has posted a series of lower highs but remains marginally above the neutral 50 level. MACD has crossed the signal line from above but continues to hold in positive territory. It’s more a cautionary message for bulls than a green light for bears. As such, for now, I'd place more emphasis on price action. Good luck! DS