The Bank of Japan (BoJ) is preparing to slash this fiscal year’s forecast for economic growth to around 1% from the present 1.7%. But it will likely not substantially alter its forecast for 1.5% growth next fiscal year, possibly tempering expectations that the central bank will soon ease monetary policy further. As Japan flirts with recession, hit by weak exports, the BoJ is preparing to cut its core consumer inflation forecast for the fiscal year that began in April to below 0.5% in a semi-annual report due out on Oct 30. It forecast inflation of 0.7% three months ago. Kuroda has said he sees no immediate need to ease further, stressing that a tightening job market will lead to wage gains and boost consumption, helping Japan generate modest inflation. The Index rose 9.2% since the start of the month and rose 9.8% year to date, plus is in a recovery phase since last week. The Nikkei 225 rose with wide range last week and closed in the green near the high of the week. The Stochastic is showing a strong bullish momentum although is still below the 50 mid line. Expecting an upward move to weekly resistance at 20,140 on a break above previous week high at 19,245 (scenario 1) or a bounce from a key level at 18,535 could push the Index up to a weekly resistance at 20,140 (scenario 2). Jp225 is a CFD written over Nikkei 225 futures.