Nikkei 225 Struggles to Extend Gains as Investors Stay Cautious

The Nikkei 225 index hovered near the flatline in Thursday’s session, holding just under the 34,350 resistance zone as investors remained hesitant to chase the rebound. After bouncing sharply off last week’s lows, Japan’s benchmark is now losing steam, with traders bracing for potential downside.

So far, the recovery has lacked strong conviction. A robust dollar and increasing U.S. bond yields persist in impacting global stocks negatively, as uncertainty regarding tech earnings and fluctuations in the yen maintain a cautious atmosphere in Tokyo.

Nikkei 225 Chart – Key Technical Levels

• Resistance capped at 34,346.4 – price stalled here on Thursday
• Next bullish trigger lies at 35,111.8 – prior support turned resistance
• Higher ceiling at 36,219.0 – key March pivot zone
• Immediate support at 33,974.6 – under pressure this week
• Breakdown zone at 31,969.6, with 30,353.7 as the recent swing low

Outlook: Nikkei Faces a Confidence Test

With no major catalysts from the Tokyo side today, traders are taking cues from global macro headlines. Upcoming earnings from Japanese tech and exporters may determine whether the index can push past resistance—or fall back toward recent lows.

Unless bulls reclaim the 35,000+ region with volume, the index remains vulnerable to a shift in risk appetite. For now, Thursday’s session shows hesitation rather than conviction.

This article was originally published on InvestingCube.com. Republishing without permission is prohibited.