Eight Clouds Rising (1997)

Two young men are bound by a sword that can cleave souls.

Fuzuchi Kuraki is a quiet young high school student blessed with immense psychic powers and an ancient sword. He is searching for other magical artifacts with the help of Nanachi Takeo, a college student with latent powers of his own. They delve deep into the dark magic of Izumo, only to discover the secrets buried within the birthplace of all Japanese mythology!