Since the beginning of the year the Japanese main index gained more than 1.0% but last week fell almost 0.9% but remains in a bullish phase since early March. Last week the index fell with a narrow range and closed in the red, near the low of the week, however managed to close within the previous week range, which suggests being slightly of the bearish side of neutral. The Index is trading within a consolidation zone that goes from 18,838 up to 19,675 and should remain until a breakout occurs. The stochastic is showing a weak bullish momentum but is above the 50 mid line. Expecting a downward move to a Fibonacci retracement at 18,838 on a break below the 10 week moving average at 19,296 (scenario 1) however a bounce from the 23.6 Fibonacci retracement at 18,838 may push upward the Japanese index to 2016 high at 19,675 (scenario 2).