Nikkei failed to break out from the falling channel and ended up forming an X wave. Nikkei index is witnessing complex correction and within that, it is possibly in wave Z. Within wave Z, the three-wave pullback in wave b looks complete, and now possibly wave c of Z is unfolding. Initially, 25650 i.e. equality level of wave C and A, will be the level to watch out for. Closing below 25650 will open the possibility of retesting the low of wave Y of 24681. On the way up, the 20DMA of 27319 and the high of wave B of 27580 will be crucial resistance levels.