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noun, の adjective
A celebrate day is a day you get off to celebrate something awesome. More specifically, this is known as a national holiday or a public holiday. Festivus for the restivus!
This is a jukugo word, which usually means on'yomi readings from the kanji. If you know the readings of your kanji you'll know how to read this as well.
Koichi always wears the most showy clothes on holidays.