

Nikkei225 Rebounds on Ceasefire Hopes and Sector Rotation

Key Takeaways -Nikkei225 recovered from an intraday low near 63,974, trading around 65,283, snapping a three-day losing streak. -Gains were supported by improved Asian risk sentiment after Iran and Israel agreed to halt attacks. -Automakers, banks, and select tech stocks led the recovery, while some high-weighted tech names experienced profit-taking. -Short-term technical levels: 65,656 resistance, 64,825 support, 63,974 intraday low; moving averages cluster indicates near-term consolidation. Nikkei225 recovered from an intraday low of 63,974, trading near 65,283 after snapping a three-session losing streak. Gains were supported by improved risk sentiment across Asia following Iran and Israel agreeing to halt attacks. Broader Asian markets also rose, with South Korea up 3.4% and Taiwan gaining 1.9%, while other countries showed moderate increases. Sector Dynamics Japanese automakers, banks, and select technology companies led the recovery. Honda rose nearly 2%, Toyota about 1%, and Tokyo Electron surged over 5%. Financials such as Mitsubishi UFJ, Sumitomo Mitsui, and Mizuho also advanced, while some tech names like SoftBank, Fast Retailing, and Sony saw declines. This split indicates traders are selective, supporting a broader index rebound while profit-taking continues in certain high-weighted stocks. Macro Drivers & Risk Sentiment The rebound is partly influenced by ceasefire headlines, stabilizing regional risk sentiment. Traders are also monitoring yen movements, Wall Street cues, and domestic factors like Japanese money supply, which saw M2 rise 2.5% YoY in May, supporting liquidity and broader market resilience. Technical Analysis & Key Levels Nikkei225 is currently trading above its short-term moving averages, with the 5-period MA at 64,968, the 10-period MA at 64,807, and the 20-period MA at 64,825. A move above 65,656 would suggest stronger recovery momentum, whereas a drop below 64,825 could signal fading buying interest and a potential retest of 63,974. Trading Outlook The short-term outlook depends on price holding above moving averages and continuing sector rotation into automakers, banks, and selective tech. Traders should watch for a breakout above 65,656 for confirmation of recovery or a breakdown below 64,825 for bearish pressure. Ceasefire progress and regional developments remain key catalysts for near-term price action. Explore the full analysis and track Nikkei225 CFD setups, sector performance, and Asia-wide risk sentiment in the article below.

Learn more

Publication date:

2026-06-09 06:22:11 (GMT)

The terms and conditions of use set out below (referred to as "FX Blue's Terms"), form a contractual agreement governing FX Blue's relationship with you in relation to your use of this Website (“Agreement”) and you agree to be legally bound by FX Blue's Terms just as if you had signed this Agreement. By using this Website and any Information, you are agreeing to comply with and be bound by FX Blue's Terms, including any revisions that may be made to FX Blue's Terms from time to time. FX Blue reserves the right, in FX Blue's sole discretion, to change, modify, add or remove portions of FX Blue's Terms at any time by posting the revisions on the Website. You should check FX Blue's Terms periodically for changes as by using the Website after FX Blue posts any changes to FX Blue's Terms, you are agreeing to accept those changes, whether or not you have reviewed them, and you waive any right you may have to receive individualised notice of such changes. FX Blue's Terms may be supplemented by additional terms and conditions pertaining to specific content and activities. You agree and understand that such additional terms and conditions are hereby incorporated by reference to FX Blue's Terms. Your continued use of the Website means that you accept any new or modified FX Blue Terms.