Since the beginning of the year, the Japanese main index lost over 4.0% but last week rose more than 1.5% and is in a warning phase since early April. Last week the Japanese index rose with a narrow range and closed near the high of the week, however managed to close within the previous week range, which suggests being slightly on the bullish side of neutral. The stochastic is a strong bullish momentum although is still below the 50 mid line. The Japanese Index continues consolidating but this time with a wider range, from 21,925 down to 20,140 where it found enough support to bounce back up again. The 50-week moving average continues to provide a dynamic support. Expecting an upward move to a Fibonacci retracement at 22,795 on a break above the previous week high at 21,990 (scenario 1) however a bounce from the Fibonacci retracement at 22,795 may bring the bears into the market pushing the index down toward the other Fibonacci retracement at 21,925 (scenario 2).