Since the beginning of the year the Japanese main index gained more than 4.5% although last week closed flat with a minor loss of 0.07% but remains in a bullish phase since late April. Last week the index went back and forward without any clear direction and closed in the middle of the weekly range, in addition managed to close within the previous week range, which suggests being clearly neutral, neither side is showing control. The Index continues to be trapped between 19,675 the previous consolidation and 20,140 a weekly resistance however there is still room to an upward push to 2015 high at 20,985. The stochastic is showing an overbought market and is displaying lack of momentum. Expecting an upward move to a weekly resistance at 20,985 on a break above the previous high at 20,225 (scenario 1) however a break below the 2016 high at 19,675 may trigger a profit taking move of the Japanese index to the lower end of the consolidation zone at 18,838 (scenario 2).