In my previous analysis, I mentioned that the Nikkei 225 Japanese Index was approaching a fresh daily demand imbalance — and today, the market has finally reached it.
Both the Nikkei futures and Nikkei CFDs have reacted sharply to that demand zone, confirming once again how precise supply and demand trading can be when we wait patiently for the price to return to imbalance.
After several days of decline, the Nikkei 225 finally reached the daily demand area created weeks ago.
That imbalance acted as a magnet for institutional orders, where professional traders and funds had been waiting to accumulate long positions.
Once the price hit that level, we saw an immediate bullish reaction — a clear signal that demand is back in control. This is where patience pays off. Most retail traders panic during pullbacks, but we wait for them.
Both the futures contract and the CFD version of the Nikkei have respected the exact same imbalance.
This alignment across instruments reinforces the validity of the zone — it’s not retail buying, it’s institutional buying pressure kicking in from demand.
If you’re holding longs from that area, this is the time to manage positions, not to add new ones. The move away from demand confirms the control shift, but remember — as always, we let the charts breathe.
Trading isn’t about predicting; it’s about reacting to imbalances and controlling emotions. The Nikkei’s bounce is not magic — it’s the market simply doing what it does when price becomes too cheap for institutions.
Patience is our edge. You don’t need indicators, you don’t need news. You just need to understand where real demand is sitting and wait for the price to get there.