Nikkei 225 fails to jumpstart the week, falling back towards 22,000.00

Japanese equities are hesitating with major corporate earnings inbound, as well as unsteady Japanese PMIs expected.
Rising Treasury yields are making traders cautious about their next steps.

The Nikkei 225 index is slipping back below the 22,100.00 level as apprehensive traders failed to keep early Monday's momentum going.

Japan's leading equity index kicked off the week with a bullish snap to 22,200.00, but the move evaporated quickly as earnings season and rising Treasury yields are leaving traders cautious in equities.

Some of the world's largest major international companies will be dropping their earnings reports this week, and Japanese equities will be feeling the strain in the run-up to reports, on top of already-taut Japanese manufacturing expectations for April.

PMIs might be off to a good start, with Japan's Nikkei preliminary Manufacturing PMI printing a 53.3, beating the previous 53.1 and a clean reversal of the expected 52.6 contraction.

Nikkei levels to watch

The Nikkei's run-up from a March low near 20,300.00 has seen the equity index walk back almost half of the major declines following January's major tumble from a high of 24,190.00, and the current challenge for bulls will be to make a clean run over last week's highs near 22,350.00 while avoiding a decline back into the previous resistance zone near 21,900.00.

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.