Key Points
- Nikkei225 traded near 65,283, recovering from an intraday low of 63,974.
- Asian markets moved mostly higher after Iran and Israel agreed to halt attacks, improving short-term risk sentiment.
- Traders are watching 65,656 resistance and 64,825 support as the next key range.
Nikkei225 recovered on Tuesday after briefly dipping into negative territory, snapping a three-session losing streak as risk sentiment improved across Asia.
The benchmark Nikkei 225 closed the morning session at 64,654.22, up 629.62 points, or 0.98%, after touching a low of 63,918.96 and a high of 65,042.43 earlier in the session.
The broader regional mood also improved. South Korea surged 3.4%, Taiwan gained 1.9%, while New Zealand, China, Singapore, and Indonesia rose between 0.3% and 0.9%. Malaysia bucked the trend, falling 0.3%, while Hong Kong traded close to flat.
The rebound came after Iran and Israel agreed to halt attacks following a fresh escalation in the conflict. US President Donald Trump said both sides were seeking an immediate ceasefire and that final negotiations were moving forward. However, the US naval blockade on Iranian ports remains in place until an agreement is reached.
Why Traders Are Watching This
Traders are watching the Nikkei225 as the index reacts to both regional risk sentiment and domestic sector rotation.
Japanese equities found support from automakers, banks, and selected technology names. Honda rose almost 2%, Toyota gained nearly 1%, Tokyo Electron surged more than 5%, Screen Holdings advanced almost 3%, and Advantest gained more than 1%.
Banks also helped the recovery. Mitsubishi UFJ Financial rose almost 2%, while Sumitomo Mitsui Financial and Mizuho Financial gained more than 1% each.
Still, the rally was uneven. SoftBank Group fell almost 3%, Fast Retailing lost more than 1%, Sony dropped more than 2%, and Sumco tumbled more than 5%. That split suggests traders are still selective, even as the broader index attempts to stabilise.
Japan’s money supply data also pointed to firmer liquidity conditions. M2 money stock rose 2.5% year-on-year in May to 1,298.1 trillion yen, following a 2.3% rise in April and a 2.0% gain in March. M3 rose 1.7% to 1,642.4 trillion yen, M1 rose 0.3% to 1,102.9 trillion yen, and L money stock jumped 4.7% to 2,334.5 trillion yen.
Key Trading Levels
| Level | What Traders Are Watching |
| 65,945 | Recent swing high and stronger recovery level |
| 65,656 | Intraday high and breakout resistance |
| 65,301 | Current recovery zone |
| 65,283 | Current trade zone |
| 64,968 | 5-period moving average |
| 64,825 | 20-period moving average and key support |
| 64,807 | 10-period moving average |
| 63,974 | Intraday low |
| 63,490 | Lower chart support |
Nikkei225 has rebounded sharply from the 63,974 intraday low and is now trading above its short-term moving averages.
The 5-period MA sits at 64,968, the 10-period MA at 64,807, and the 20-period MA at 64,825. This keeps the short-term structure tilted toward buyers as long as price holds above the moving average cluster.
A clean move above 65,656 would strengthen the recovery setup and bring 65,945 back into focus. A drop below 64,825 would suggest momentum is fading and could pull price back toward 63,974.
Bullish and Bearish Setups
| Setup | Trigger | Potential Market Reaction |
| Bullish Breakout | Move above 65,656 | Buyers may target 65,945 |
| Pullback Setup | Hold above 64,825 | Traders may watch for renewed buying interest |
| Bearish Break | Move below 64,825 | Sellers may target 63,974 |
| Deeper Pullback | Break below 63,974 | Downside may extend toward 63,490 |
The bullish setup depends on Nikkei225 holding above the moving average cluster and breaking 65,656. That would show buyers are willing to extend the rebound after the three-session decline.
The pullback setup may become cleaner if price dips toward 64,825 and stabilises. This would show whether buyers are defending the recovery zone.
The bearish setup builds if Nikkei225 falls below 64,825. A break under that level would weaken the short-term structure and bring the intraday low near 63,974 back into focus.
Disclaimer
The price levels and trade scenarios above reflect the author’s view at the time of writing and do not represent financial advice or an official recommendation from VT Markets. Traders should conduct their own analysis and manage risk carefully.
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What to Watch Next
Traders should watch 65,656 resistance and 64,825 support.
A break above 65,656 could confirm stronger recovery momentum and bring 65,945 into focus. A move below 64,825 would weaken the rebound and shift attention back toward 63,974.
Beyond the chart, the next drivers are ceasefire headlines, yen movement, Wall Street risk sentiment, and whether Japanese banks, automakers, and technology stocks can keep offsetting weakness in index heavyweights.
FAQs
Why Is Nikkei225 Rising Today?
Nikkei225 is rising as Asian markets recover on renewed ceasefire optimism between Iran and Israel. Gains in automakers, banks, and selected technology shares also helped Japan’s benchmark index rebound from recent losses.
What Is the Key Level to Watch for Nikkei225?
The key upside level is 65,656. A move above this area could support a push toward 65,945. On the downside, 64,825 is the first major support level to watch.
Can Nikkei225 Continue Higher?
Nikkei225 could continue higher if buyers hold the moving average cluster near 64,807 to 64,968 and push price above 65,656. A stronger move would need continued risk appetite and support from major sectors.
What Could Push Nikkei225 Lower?
Nikkei225 could come under pressure if ceasefire optimism fades, the yen strengthens sharply, Wall Street sentiment weakens, or major index heavyweights continue to decline. A move below 64,825 would weaken the short-term setup.
Can I Trade Nikkei225 With VT Markets?
Yes. VT Markets offers access to Nikkei225 CFDs, allowing traders to take a view on rising or falling Japanese index moves without owning the underlying stocks. Traders can also access forex, gold, oil, shares, ETFs, and other CFD markets from one platform.
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