MUFG Rises 2.06% As Bullish Indicators Signal Breakout Potential

Mitsubishi UFJ Financial Group (MUFG) closed at ¥15.34 in the latest session, gaining 2.06% on moderate volume, indicating renewed bullish momentum after recent consolidation.
Candlestick Theory
Recent candlesticks show a bullish reversal pattern. The August 12th session formed a bullish engulfing candle (¥14.49 open to ¥15.10 close) after testing support near ¥14.50. This was validated by the August 14th white candle with a higher high (¥15.37) and close near the peak (¥15.34), signaling accumulation. Key resistance is established at ¥15.40 (YTD high), while support lies at ¥14.95–15.00 (consolidation low and psychological level). A decisive break above ¥15.40 would confirm continuation, whereas failure here may trigger profit-taking.
Moving Average Theory
The moving averages exhibit a bullish hierarchy: 50-day MA (¥14.35) > 100-day MA (¥14.10) > 200-day MA (¥13.05). The current price (¥15.34) trades above all three, confirming a long-term uptrend. The 50-day MA has consistently acted as dynamic support during pullbacks since April 2025. Notably, the 50/100-day golden cross in June 2025 preceded accelerated upside. This alignment suggests strong trend integrity, though extended price deviations warrant monitoring for mean-reversion signals.
MACD & KDJ Indicators
The MACD (12,26,9) shows a bullish crossover above its signal line, with the histogram expanding positively since August 12th. This momentum shift aligns with KDJ readings: the %K line (83) recently crossed above %D (78) after exiting oversold territory (<20) in early August. While both oscillators support near-term upside, the KDJ’s proximity to overbought territory (>80) suggests potential consolidation. No bearish divergence is observed; both indicators corroborate the price breakout.
Bollinger Bands
Price breached the upper Bollinger Band (20-day, 2σ) at ¥15.30 on August 14th, closing near the band’s edge. This extension follows a volatility contraction (bandwidth narrowing 30% in July), typically preceding directional moves. The breakout from a multi-week range signals bullish conviction. However, sustained trading above the upper band is historically unsustainable; a retest of the 20-day SMA (¥14.80) or midline (¥14.95) appears probable before further advancement.
Volume-Price Relationship
Volume surged 49% on August 12th’s 4.21% advance, confirming accumulation at the ¥14.95 support. The subsequent 2.06% gain on August 14th occurred on slightly lower volume but still exceeded the 30-day average, suggesting conviction. Notably, distribution phases (e.g., July 28th’s 3.75% decline) occurred on below-average volume, indicating weak bearish commitment. This volume skew toward advancing sessions supports trend sustainability.
Relative Strength Index
The 14-day RSI (76) resides in overbought territory, having climbed sharply from 45 in early August. While this warns of overheating, its recent breakout above the 70 threshold parallels similar momentum surges in May and July 2025 that extended gains before mean-reversion. Bullish RSI divergences preceded the current upswing (higher lows in RSI versus price in late July). Traders should monitor for reversal candlesticks or volume exhaustion near resistance, but the indicator currently aligns with trend strength.
Fibonacci Retracement
Applying Fib levels to the primary uptrend (October 2024 low: ¥10.15 → August 2025 high: ¥15.37) yields key retracement zones: 23.6% (¥14.25), 38.2% (¥13.55), and 61.8% (¥12.50). Recent pullbacks consistently respected the 23.6% retracement (July 2025 low: ¥14.12), reinforcing its significance as major support. The current price approaches the 0% extension level (¥15.37); a breakout could target the 123.6% extension (¥16.20). Confluence exists near ¥15.00–15.10 (23.6% Fib + horizontal resistance flip), providing a high-probability support zone.
Confluence and Divergence Synopsis
Confluence at ¥15.00–15.10 (Fib support, swing high resistance flip, and 20-day SMA) offers a robust technical floor. Bearish signals include Bollinger Band extension and RSI >75, implying consolidation, but lack divergence with MACD/KDJ limits downside. Bullish agreement among moving averages, volume confirmation, and candlestick reversals indicates upside bias. Near-term resistance at ¥15.40 remains critical; sustained volume-backed clearance may catalyze momentum toward ¥16.00–16.20. Probabilistically, shallow pullbacks appear more likely than deep corrections given the established trend confluence.