Nikkei 225 rebounds after bulls defend key support zoneJapan 225 CFDFOREXCOM:JP225FOREXcomOur Nikkei 225 contract bounced strongly overnight after bulls successfully defended a key support zone comprising the April 2025 uptrend, 50DMA and horizontal support at 54500, seeing the contract lift back to former horizontal support at 56500. With no obvious signal from the oscillators, the proximity to this level provides a decent entry point for trades, depending on how the price action evolves today. If the price remains capped beneath it, shorts could be set with a stop above, targeting any of the levels noted in the support zone outlined earlier. But if the rebound can extend beyond 56500, longs could be set above with a stop below, targeting 57700 initially and, beyond that, the record high of 60051 set only last week. It’s probably worth noting that supply disruptions to energy products caused by conflict in the Middle East have not gone away, with Wednesday’s risk rally sparked by a days-old report that was later refuted by the Iranians. Markets didn’t care, but it shows the mindset out there right now: traders will latch onto any good news, no matter how spurious, while fading anything bad. That’s as decent a playbook as any right now on how to approach setups involving riskier asset classes. Good luck! DS