Outlook for the Nikkei average this week [23 February 2026]

 [Fundamental viewpoint]

Last week in the U.S. market, stock indices rose for the week on expectations for an agreement in nuclear talks between the U.S. and Iran and a court ruling declaring mutual tariffs unconstitutional.

Weekly Change Rate: NY Dow: +0.25%, NASDAQ: +1.51%, S&P 500: +1.07%.

                                                                                                 

On the other hand, medium- to long-term risks include concerns about a prolonged conflict in Ukraine, tariff policies of the U.S. administration, financial instability and global economic slowdown due to rising interest rates, and the collapse of the real estate bubble and economic slowdown in China. This also raises concerns about the arrival of stagflation. Furthermore, geopolitical risks in Latin America and East Asia, the Middle East continue to require attention..

The difference in the yield spread between the Japanese and U.S. markets is 0.66 points undervalued for the Japanese market when the OECD's nominal GDP forecast for 2026 is taken into account. The reason for the undervaluation is the difference between the S&P 500's P/E ratio of 21.9 and the Nikkei 225's P/E ratio of 20.2 the difference between the U.S. and Japanese interest rates, and the difference in GDP growth rates.

In order for the U.S. and Japanese markets to be in equilibrium, the following conditions must be met.

The difference in GDP growth between Japan and the U.S. in 2026 relative to the current price of the Nikkei 225 will be 0.66 percentage points larger than the OECD forecast. (Japan is revised downward or the U.S. is revised upward). Or the current year's forecast PER for stocks in the Nikkei Stock Average becomes about 23.3 Or, the Nikkei 225 will be around 65,600 yen.

As a result, the Japanese market is undervalued by about 8,770 yen in the medium to long term.

 

Fundamentally speaking, the Japanese market is about ¥8,770 less attractive than the U.S. market. Last week, the weakness in the Japanese market intensified.

 

[Conditions for Nikkei average rise]

In the future, the following assumptions are necessary for the Nikkei average to rise further.

①    Rising US market

②　Increase in profit forecast for the current fiscal year above the previous year's level

③ Further depreciation of the yen due to the widening interest rate gap between Japan and the U.S.

④ Upward revision of Japan's 2026 GDP estimate (now +2.5%) by OECD

⑤ Foreign investors over-buying

 

Looking at recent movements

①    The weekly leg of the NYDow was positive last week. The daily is above the 200-day line and above the clouds on the Ichimoku Chart. The weekly leg of the NASDAQ was positive. The daily is above the 200-day line and below the clouds on the Ichimoku Chart. This week, the focus will be on whether the NY Dow can keep above the 25-day line.

②    Following the earnings announcements, the projected ROE for Nikkei 225 constituents reached +9.0%. This represents a 0.1 percentage point improvement compared to three months ago. The profit growth rate stood at +1.0%, marking a 4.6 percentage point improvement compared to three months ago.

③    U.S. long-term interest rates rose, widening the interest rate differential between Japan and the U.S. from 1.84 to 1.98. The dollar-yen exchange rate moved in a weakening direction for the yen, fluctuating between the 152 and 155 yen range. The dollar index rose +0.93% for the week.

④    The OECD's nominal GDP growth rate for Japan and the U.S. in 2026 is expected to be +3.2% for Japan and +4.9% for the U.S., so the Japanese market is 1.7 percentage points inferior in this aspect.

The second week of February saw net buying, the third week likely saw net buying, and net buying is expected this week. Last week, out of the five points, ① and ③ were bullish factors.

 

[Technical viewpoint]

From a technical perspective, the Japanese market is overvalued by 20.8 percentage points (equivalent to approximately ¥11,820 for the Nikkei 225) relative to the NASDAQ's 200-day moving average deviation rate on a medium-to-long-term basis. Meanwhile, it is overvalued by 17.2 percentage points (equivalent to approximately ¥9,770 for the Nikkei 225) relative to the NY Dow's 200-day moving average deviation rate on a medium-to-long-term basis.

 

The Japanese market is outperforming the NY Dow and NASDAQ. The VIX, an indicator of volatility in the U.S. market, fell to 19.1 on a weekly basis. The Nikkei VI also declined to 26.8 on a weekly basis. The U.S. market is in a state of “mood of distrust,” and the Japanese market is also in a state of “mood of distrust.”

 

The Nikkei Average is below the 9-day and above 25-day moving averages. A “yellow light” is lit for the short-term trend.

The Nikkei Average is above the cloud in the Ichimoku Kinko Hyo chart. The overall deviation rate is +37.7%, and the deviation rate from the 200-day moving average is +24.8%. With all three factors positive, a “green light” is lit for the medium-term trend.

 

In the US market, the NY Dow is below the 9-day line and above 25-day and 200-day lines. It is above the clouds of the Ichimoku chart.

The NASDAQ is below the 9-day line and 25-day and above 200-day lines. It is below the clouds the Ichimoku Chart.

It is a ‘yellow light’ in the short term and a ‘yellown light’ in the medium term.

 

[Outlook for this week]

In the U.S. market, key immediate concerns include the AI agent shock, the frequency of interest rate cuts by the Federal Reserve this year, the Supreme Court's ruling on the unconstitutionality of Trump tariffs, and the market impact of advancing Donlowism.

 

Looking at the technical aspects, the U.S. market is in a medium-term no trend and a short-term no trend. The Japanese market is in a medium-term up trend, and the short-term is no trend.

 

Analysis of the foreign exchange market indicates that the yen has shifted towards depreciation, with the low of 139 yen reached in April 2025 marking the bottom. This week, the yen is expected to trade between the 156 and 153 yen per dollar range.

 

This week in the U.S. market, NVIDIA's earnings release and guidance will serve as a leading indicator of global AI demand, which has driven the U.S. stock market in past quarters. Among economic indicators, the Producer Price Index, housing prices, the Consumer Confidence Index, and regional Federal Reserve Bank leading indicators will be closely watched. Globally, Germany and France will release their Consumer Price Indexes, India will announce its fourth-quarter GDP, and the People's Bank of China and the Bank of Korea will announce their policy interest rates.

 

Last week, the Nikkei Average traded within the expected range. The upper limit fell short by 130 yen, while the lower limit exceeded 1,700 yen.

This week, the Nikkei Average is expected to move within a range defined by the upper limit at the Bollinger Band +2σ (currently around 58,320 yen) and the lower limit at the 25-day moving average (currently 54,810 yen).

                           

This week, the Nikkei Average is likely to consolidate after a pause following the sharp rally after the House of Representatives election.

Outlook for the Nikkei average this week [15 February 2026]

 [Fundamental viewpoint]

Last week in the U.S. market, concerns persisted that AI could replace existing businesses, leading to selling pressure on software and large-cap tech stocks. As a result, stock indices declined for the week.

Weekly Change Rate: NY Dow: -1.23%, NASDAQ: -2.10%, S&P 500: -1.39%.

                                                                                                 

On the other hand, medium- to long-term risks include concerns about a prolonged conflict in Ukraine, tariff policies of the U.S. administration, financial instability and global economic slowdown due to rising interest rates, and the collapse of the real estate bubble and economic slowdown in China. This also raises concerns about the arrival of stagflation. Furthermore, geopolitical risks in Latin America and East Asia, the Middle East continue to require attention..

The difference in the yield spread between the Japanese and U.S. markets is 0.43 points undervalued for the Japanese market when the OECD's nominal GDP forecast for 2026 is taken into account. The reason for the undervaluation is the difference between the S&P 500's P/E ratio of 21.9 and the Nikkei 225's P/E ratio of 20.6 the difference between the U.S. and Japanese interest rates, and the difference in GDP growth rates.

In order for the U.S. and Japanese markets to be in equilibrium, the following conditions must be met.

The difference in GDP growth between Japan and the U.S. in 2026 relative to the current price of the Nikkei 225 will be 0.430 percentage points larger than the OECD forecast. (Japan is revised downward or the U.S. is revised upward). Or the current year's forecast PER for stocks in the Nikkei Stock Average becomes about 22.6 Or, the Nikkei 225 will be around 62,430 yen.

As a result, the Japanese market is undervalued by about 5,490 yen in the medium to long term.

 

From a fundamental perspective, the Japanese market is about 5,490 yen less attractive than the U.S. market. Last week, the weakness in the Japanese market diminished.

 

[Conditions for Nikkei average rise]

In the future, the following assumptions are necessary for the Nikkei average to rise further.

①    Rising US market

②　Increase in profit forecast for the current fiscal year above the previous year's level

③ Further depreciation of the yen due to the widening interest rate gap between Japan and the U.S.

④ Upward revision of Japan's 2026 GDP estimate (now +2.5%) by OECD

⑤ Foreign investors over-buying

 

Looking at recent movements

①    The weekly leg of the NYDow was negative last week. The daily is above the 200-day line and above the clouds on the Ichimoku Chart. The weekly leg of the NASDAQ was negative. The daily is above the 200-day line and below the clouds on the Ichimoku Chart. This week, the focus will be on whether the NY Dow can keep above the 25-day line.

②    Following the earnings announcements, the projected ROE for Nikkei 225 constituents reached +8.9%. This represents a 0.3 percentage point improvement compared to three months ago. The profit growth rate stood at -1.3%, marking a 4.6 percentage point improvement compared to three months ago.

③    U.S. long-term interest rates declined, narrowing the interest rate differential between Japan and the U.S. from 2.00 to 1.84. The dollar-yen exchange rate moved toward yen appreciation, fluctuating between the 157 yen range and the 152 yen range. The dollar index fell by -0.82% for the week.

④    The OECD's nominal GDP growth rate for Japan and the U.S. in 2026 is expected to be +3.2% for Japan and +4.9% for the U.S., so the Japanese market is 1.7 percentage points inferior in this aspect.

⑤    The first week of February saw net buying, the second week likely saw net buying, and net buying is expected this week. Last week, out of the five points, ⑤ was the bullish factor.

 

[Technical viewpoint]

From a technical perspective, the Japanese market is overvalued by 23.7 percentage points (equivalent to approximately ¥13,500 for the Nikkei 225) relative to the NASDAQ's 200-day moving average deviation rate on a medium-to-long-term basis. Meanwhile, it is overvalued by 18.8percentage points (equivalent to approximately ¥10,710 for the Nikkei 225) relative to the NY Dow's 200-day moving average deviation rate on a medium-to-long-term basis.

 

The Japanese market is stronger than the NY Dow and NASDAQ. The VIX, an indicator of volatility in the U.S. market, rose to 20.6 on a weekly basis. The Nikkei VI fell to 34.2 on a weekly basis. The U.S. market is in a state of “moodiness,” while the Japanese market is in a state of “fear of heights.”

 

The Nikkei Average is above both the 9-day and 25-day moving averages. A “green light” is lit for the short-term trend.

The Nikkei Average is above the cloud in the Ichimoku Kinko Hyo chart. The overall deviation rate is +42.4%, and the deviation rate from the 200-day moving average is +26.6%. With all three factors positive, a “green light” is lit for the medium-term trend.

 

In the US market, the NY Dow is below the 9-day line and above 25-day and 200-day lines. It is above the clouds of the Ichimoku chart.

The NASDAQ is below the 9-day line and 25-day and above 200-day lines. It is below the clouds the Ichimoku Chart.

It is a ‘yellow light’ in the short term and a ‘yellown light’ in the medium term.

 

[Outlook for this week]

In the U.S. market, key immediate concerns include the AI agent shock, the frequency of interest rate cuts by the Federal Reserve this year, the Supreme Court's ruling on the unconstitutionality of Trump tariffs, and the market impact of advancing Donlowism.

 

Looking at the technical aspects, the U.S. market is in a medium-term no trend and a short-term no trend. The Japanese market is in a medium-term up trend, and the short-term is up trend.

 

Analysis of the foreign exchange market indicates that the yen has shifted towards depreciation, with the low of 139 yen reached in April 2025 marking the bottom. This week, the yen is expected to trade between the 152 and 155 yen per dollar range.

 

This week in the U.S. market, attention will focus on the minutes from the previous meeting where the Fed paused its rate-cutting cycle. Economic indicators include Q4 GDP, housing starts, industrial production, and the PCE deflator. Earnings reports are scheduled from Walmart, Newmont, Palo Alto Networks, Analog Devices, and others. Globally, key European PMIs, Japan's fourth-quarter GDP, and price statistics will be released.

 

Last week, the Nikkei average significantly exceeded its projected range. The upper limit surpassed 1,830 yen, while the lower limit exceeded 1,640 yen.

This week, the Nikkei average is expected to move within a projected range defined by the upper limit at the Bollinger Band +2σ (currently around 57,170 yen) and the lower limit at the 25-day moving average (currently 54,020 yen).

                           

This week, the Nikkei Average is likely to pause as a reaction to the sharp rally following the House of Representatives election, but it should maintain its upward trend since the start of the year.

Outlook for the Nikkei average this week [8 February 2026]

 [Fundamental viewpoint]

Last week in the U.S. market, the emergence of AI agents led to selling in software and semiconductor stocks, while defensive stocks were bought, resulting in mixed weekly performance for stock indices.

Weekly Change: NY Dow: +2.50%, NASDAQ: -1.84%, S&P 500: -0.10%.

                                                                                                 

On the other hand, medium- to long-term risks include concerns about a prolonged conflict in Ukraine, tariff policies of the U.S. administration, financial instability and global economic slowdown due to rising interest rates, and the collapse of the real estate bubble and economic slowdown in China. This also raises concerns about the arrival of stagflation. Furthermore, geopolitical risks in Latin America and East Asia, the Middle East continue to require attention..

The difference in the yield spread between the Japanese and U.S. markets is 0.70 points undervalued for the Japanese market when the OECD's nominal GDP forecast for 2026 is taken into account. The reason for the undervaluation is the difference between the S&P 500's P/E ratio of 22.1 and the Nikkei 225's P/E ratio of 20.3 the difference between the U.S. and Japanese interest rates, and the difference in GDP growth rates.

In order for the U.S. and Japanese markets to be in equilibrium, the following conditions must be met.

The difference in GDP growth between Japan and the U.S. in 2026 relative to the current price of the Nikkei 225 will be 0.70 percentage points larger than the OECD forecast. (Japan is revised downward or the U.S. is revised upward). Or the current year's forecast PER for stocks in the Nikkei Stock Average becomes about 23.7 Or, the Nikkei 225 will be around 63,280 yen.

As a result, the Japanese market is undervalued by about 9,030 yen in the medium to long term.

 

From a fundamental perspective, the Japanese market is about 9,030 yen less attractive than the U.S. market. Last week, the weakness in the Japanese market diminished.

 

[Conditions for Nikkei average rise]

In the future, the following assumptions are necessary for the Nikkei average to rise further.

①    Rising US market

②　Increase in profit forecast for the current fiscal year above the previous year's level

③ Further depreciation of the yen due to the widening interest rate gap between Japan and the U.S.

④ Upward revision of Japan's 2026 GDP estimate (now +2.5%) by OECD

⑤ Foreign investors over-buying

 

Looking at recent movements

①    The weekly leg of the NYDow was positive last week. The daily is above the 200-day line and above the clouds on the Ichimoku Chart. The weekly leg of the NASDAQ was negative. The daily is above the 200-day line and within the clouds on the Ichimoku Chart. This week, the focus will be on whether the NY Dow can keep above the 25-day line.

②    Following the earnings announcements, the projected ROE for Nikkei 225 constituents stands at +8.8%. This is unchanged from three months ago. The profit growth rate is -3.2%, an improvement of +3.3 percentage points compared to three months ago.

③    U.S. long-term interest rates declined, and the interest rate differential between Japan and the U.S. remained flat at 2.00%. However, the dollar-yen exchange rate moved in a weakening direction for the yen, fluctuating within the range of the 154 yen level to the 157 yen level. The dollar index rose +0.55% for the week.

④    The OECD's nominal GDP growth rate for Japan and the U.S. in 2026 is expected to be +3.2% for Japan and +4.9% for the U.S., so the Japanese market is 1.7 percentage points inferior in this aspect.

⑤    The fourth week of January saw net buying, the first week of February likely saw net buying, and net buying is expected this week. Last week, out of the five points, ③ was the bullish factor.

 

[Technical viewpoint]

From a technical perspective, the Japanese market is overvalued by 16.1 percentage points (equivalent to approximately ¥8,730 for the Nikkei 225) relative to the NASDAQ's 200-day moving average deviation rate on a medium-to-long-term basis. Meanwhile, it is overvalued by 12.2 percentage points (equivalent to approximately ¥6,620 for the Nikkei 225) relative to the NY Dow's 200-day moving average deviation rate on a medium-to-long-term basis.

 

The Japanese market is stronger than the NY Dow and NASDAQ. The VIX, an indicator of volatility in the U.S. market, rose to 17.8 on a weekly basis. The Nikkei VI rose to 39.0 on a weekly basis. The U.S. market is in a “slightly optimistic” state, while the Japanese market is in a “fear of heights” state.

 

The Nikkei Average is above both the 9-day and 25-day moving averages. A “green light” is lit for the short-term trend.

The Nikkei Average is above the cloud in the Ichimoku Kinko Hyo chart. The overall deviation rate is +30.1%, and the deviation rate from the 200-day moving average is +21.8%. With all three factors positive, a “green light” is lit for the medium-term trend.

 

In the US market, the NY Dow is above the 9-day line and 25-day and 200-day lines. It is above the clouds of the Ichimoku chart.

The NASDAQ is below the 9-day line and 25-day and above 200-day lines. It is within the clouds the Ichimoku Chart.

It is a ‘yellow light’ in the short term and a ‘yellown light’ in the medium term.

 

[Outlook for this week]

In the U.S. market, key immediate concerns include the AI agent shock, the frequency of interest rate cuts by the Federal Reserve this year, the Supreme Court's ruling on the unconstitutionality of Trump tariffs, and the market impact of advancing Donlowism.

 

Looking at the technical aspects, the U.S. market is in a medium-term no trend and a short-term no trend. The Japanese market is in a medium-term up trend, and the short-term is up trend.

 

Analysis of the foreign exchange market indicates that the yen has shifted towards depreciation, with the low of 139 yen reached in April 2025 marking the bottom. This week, the yen is expected to trade between the 155 and 158 yen per dollar range.

 

This week in the U.S. market, focus will be on earnings reports from McDonald's, Coca-Cola, Cisco, T-Mobile, and Applied Materials, in addition to employment statistics, the Consumer Price Index (CPI), and retail sales figures. Globally, the UK's fourth-quarter GDP, China's inflation indicators, and Japan's general election will be the main focal points this week.

 

Last week, the Nikkei Average traded largely within the expected range. The upper limit fell short by 450 yen, while the lower limit fell short by 190 yen.

This week, the Nikkei Average is expected to move within a range defined by the upper limit at the Bollinger Band +2σ (currently around 55,230 yen) and the lower limit at the 25-day moving average (currently 53,140 yen).

                           

This week's Nikkei is likely to be heavily influenced by the House of Representatives election results. However, overnight last weekend, the Nikkei futures price already surpassed ¥56,000, setting a new record high.

Outlook for the Nikkei average this week [2 February 2026]

 [Fundamental viewpoint]

Last week in the U.S. markets, stock indices showed mixed results for the week as earnings reports from companies announcing quarterly results yielded mixed results and speculation swirled around the next Federal Reserve chair.

Weekly Change: NY Dow: -0.42%, NASDAQ: -0.17%, S&P 500: +0.34%.

                                                                                                 

On the other hand, medium- to long-term risks include concerns about a prolonged conflict in Ukraine, tariff policies of the U.S. administration, financial instability and global economic slowdown due to rising interest rates, and the collapse of the real estate bubble and economic slowdown in China. This also raises concerns about the arrival of stagflation. Furthermore, geopolitical risks in Latin America and East Asia, the Middle East continue to require attention..

The difference in the yield spread between the Japanese and U.S. markets is 1.00 points undervalued for the Japanese market when the OECD's nominal GDP forecast for 2026 is taken into account. The reason for the undervaluation is the difference between the S&P 500's P/E ratio of 22.9 and the Nikkei 225's P/E ratio of 19.8 the difference between the U.S. and Japanese interest rates, and the difference in GDP growth rates.

In order for the U.S. and Japanese markets to be in equilibrium, the following conditions must be met.

The difference in GDP growth between Japan and the U.S. in 2026 relative to the current price of the Nikkei 225 will be 1.00 percentage points larger than the OECD forecast. (Japan is revised downward or the U.S. is revised upward). Or the current year's forecast PER for stocks in the Nikkei Stock Average becomes about 24.6 Or, the Nikkei 225 will be around 66,390 yen.

As a result, the Japanese market is undervalued by about 13,060 yen in the medium to long term.

 

From a fundamental perspective, the Japanese market is about 13,060 yen less attractive than the U.S. market. Last week, the weakness in the Japanese market expanded.

 

[Conditions for Nikkei average rise]

In the future, the following assumptions are necessary for the Nikkei average to rise further.

①    Rising US market

②　Increase in profit forecast for the current fiscal year above the previous year's level

③ Further depreciation of the yen due to the widening interest rate gap between Japan and the U.S.

④ Upward revision of Japan's 2026 GDP estimate (now +2.5%) by OECD

⑤ Foreign investors over-buying

 

Looking at recent movements

①    The weekly leg of the NYDow was negative last week. The daily is above the 200-day line and above the clouds on the Ichimoku Chart. The weekly leg of the NASDAQ was negative. The daily is above the 200-day line and the clouds on the Ichimoku Chart. This week, the focus will be on whether the NY Dow can return above the 25-day line.

②    Following the earnings announcements, the projected ROE for Nikkei 225 constituents stands at +8.8%. This is unchanged from three months ago. The profit growth rate is -3.2%, an improvement of +3.3 percentage points compared to three months ago.

③    U.S. long-term interest rates rose, widening the interest rate differential between Japan and the U.S. from 1.99 to 2.00. The dollar-yen exchange rate moved slightly toward yen depreciation, fluctuating between the 152 and 155 yen range. The dollar index fell by -0.32% over the week.

④    The OECD's nominal GDP growth rate for Japan and the U.S. in 2026 is expected to be +3.2% for Japan and +4.9% for the U.S., so the Japanese market is 1.7 percentage points inferior in this aspect.

⑤    The third week of January likely saw net buying, while the fourth week likely saw net selling. This week is expected to see net selling. Last week, points ① and ③ were bearish factors out of the five points.

 

[Technical viewpoint]

From a technical perspective, the Japanese market is overvalued by 12.7 percentage points (equivalent to approximately ¥6,770 for the Nikkei 225) relative to the NASDAQ's 200-day moving average deviation rate on a medium-to-long-term basis. Meanwhile, it is overvalued by 13.6 percentage points (equivalent to approximately ¥7,250 for the Nikkei 225) relative to the NY Dow's 200-day moving average deviation rate on a medium-to-long-term basis.

 

The Japanese market is stronger than the NY Dow and NASDAQ. The VIX, an indicator of volatility in the U.S. market, rose to 17.4 on a weekly basis. The Nikkei VI rose to 34.7 on a weekly basis. The U.S. market is in a “slightly optimistic” state, while the Japanese market is in a “fear of heights” state.

 

The Nikkei Average is above both the 9-day and 25-day moving averages. A “green light” is lit for the short-term trend.

The Nikkei Average is above the cloud in the Ichimoku Kinko Hyo chart. The overall deviation rate is +21.1%, and the deviation rate from the 200-day moving average is +21.1%. With all three factors positive, a “green light” is lit for the medium-term trend.

 

In the US market, the NY Dow is below the 9-day line and 25-day and above 200-day lines. It is above the clouds of the Ichimoku chart.

The NASDAQ is below the 9-day line and 25-day and above 200-day lines. It is above the clouds the Ichimoku Chart.

It is a ‘red light’ in the short term and a ‘green light’ in the medium term.

 

[Outlook for this week]

In the U.S. market, key immediate concerns are expected to include the frequency of interest rate cuts by the Federal Reserve this year, the Supreme Court's ruling on the constitutionality of Trump tariffs, and the market impact of advancing protectionist policies.

 

Looking at the technical aspects, the U.S. market is in a medium-term up trend and a short-term down trend. The Japanese market is in a medium-term up trend, and the short-term is up trend.

 

Analysis of the foreign exchange market indicates that the yen has shifted towards depreciation, with the low of 139 yen reached in April 2025 marking the bottom. This week, the yen is expected to trade between the 153 and 157 yen per dollar range.

 

This week in the U.S. markets, key concerns include the impact of President Trump's nomination of Kevin Warsh as the next Federal Reserve Chair, unprecedented volatility in precious metal prices, and the effects of dollar weakness. Economic indicators scheduled for release include the Employment Report, JOLTS (Job Openings and Labor Turnover Survey), ADP Employment Report, ISM Manufacturing PMI, and the University of Michigan Consumer Sentiment Index. Earnings reports from Alphabet, Amazon, AMD, Palantir, and Qualcomm are expected to provide updates on investors' views regarding AI-related businesses. Globally, the ECB, BOE, and RBA will announce policy interest rates, while the eurozone inflation rate and China's PMI will be closely watched.

 

Last week, the Nikkei Average traded within its expected range. The upper limit fell below 1,360 yen, while the lower limit rose above 470 yen.

This week, the Nikkei Average is expected to move within a range defined by the upper limit at the Bollinger Band +2σ (currently around 55,130 yen) and the lower limit at the 25-day moving average (currently 52,450 yen).

                           

This week, the Nikkei average is likely to be significantly influenced by movements in the dollar-yen exchange rate and precious metal prices.