Nikkei 225 Eyes Bounce as Wall Street Rebound Continues

After a rebound on Wall Street, risk appetite has improved ahead of the US nonfarm payrolls report. This improvement has a positive impact on the near-term backdrop for risk assets.

Nikkei 225 futures are showing signs of stabilisation around technical support, although KOSPI price action and resistance near 66k could determine whether the recovery gains traction.

The S&P 500, Nasdaq 100, and Dow Jones futures have all risen after finding support at key levels. However, a hot nonfarm payrolls print could revive hawkish bets and weigh on Wall Street sentiment.

A potential falling wedge is forming on the daily Nikkei futures chart, which is considered a bullish continuation pattern within an uptrend.