Japanese national CPI fell to 0.4% year over year (YoY) in June versus 0.5% in May 2015. BOJ declared in its July monetary policy speech that CPI is likely to be remained at 0.0% for a while. Obviously that statement puts Nikkei at risk and makes it face 225 gapped lower on Friday’s open. For technical analyzers 124.40 shows itself as a very strong resistance. Also around 123 we had and have a good support level. Breaking 124.4 will lead pair around 125.6 high and breaking support down can pave the way for testing 120.50.
In large view long term uptrend from 75.50 is still valid and has some intention to test even 135.00 or even much higher around 148.00.
On the downside which is more unlikely, firm break of 118.88 support level would argue that the medium term trend is reversing and would at least bring a correction back to 115.50 support level.