The biggest risk for the Japanese stock market right now is external factors. If the U.S. markets fall, that would in turn have an impact on Japanese stocks.
The Nikkei is likely to stay underpinned at around 12,400 for now, about 2 percent above its 20-day moving average.
Because Japan is an energy efficient country, up until now higher oil prices just meant that resource-related stocks would advance and it wouldn't be a negative for any other sectors.
If the numbers come in better than expected, there is a good chance the market could push to a new high next week.
On the individual level there is a lot of short-term movement right now, as everyone knows that Japanese stocks are in an upward trend over the long term.
We've had a great run, but it's too much, too fast. The economic data haven't been strong enough to justify the kind of gains we've seen recently and today's leading economic indicator could signal a slowdown, giving us a wakeup call.
Share prices rose in knee-jerk reaction to the rally in US markets Friday and a weaker yen.
So far, Japanese shares have risen together with a rise in long-term bond yields.
After the U.S. rise, I don't think we can expect selling at the start of trade, but investors are waiting for 2 p.m..
After the strength abroad, I think we will see some fresh highs today, I think the market is likely to be strong again.
