The Nikkei 225 Index staged a fragile rebound on Tuesday, climbing back above 32,800 after a terrifying plunge to 30,353, its lowest level since October. The sharp selloff, triggered by Trump’s global tariff shock and rising recession fears, has thrown Japan’s equity markets into a tailspin, with momentum indicators still pointing deep into bearish territory.
While today’s bounce may offer temporary relief, the damage to market structure is clear — and the bulls are fighting an uphill battle.
Why Japan’s Markets Are Crashing
The selloff in Japanese equities mirrors the global panic sparked by escalating U.S.–China trade tensions. Japan, a major exporter deeply tied to global supply chains, is particularly vulnerable to protectionist shocks and currency instability.
Investors also remain cautious ahead of upcoming BOJ policy guidance, especially as the yen’s volatility continues to weigh on Japanese corporates and foreign investor flows.
Nikkei 225 Chart Analysis
Tuesday’s bounce off 30,353.70 came after five straight red sessions. However, the index is now approaching strong resistance at 33,974.60, and indicators suggest any rally could be short-lived.
- Trend: Strong bearish reversal
- Momentum: RSI at 31.86 — just off oversold, but still weak
- MACD: Deeply negative, no bullish crossover in sight
- Immediate Resistance: 33,974.6 · 35,111.8
- Key Support: 31,969.6 · 30,353.7
Final Outlook for Nikkei 225: Technical Rebound or More Pain Ahead?
The Nikkei 225 has stabilized — for now. But beneath the surface, the technicals remain broken, sentiment is rattled, and downside risks are still in play.
Until price action proves otherwise, every rally is suspect, and 30,353 could easily be revisited if global volatility accelerates.