The key question for Nikkei 225 futures this week is whether they can break out of the range between the 25-day and 75-day moving averages. Trading could remain volatile as markets anticipate US earnings and events related to the Federal Reserve.
Nikkei 225 futures continued to consolidate mainly around the ¥65,000 level after rising the previous week, moving with the range between the 25-day and 75-day moving averages in focus. From a technical perspective, with the point at which the moving averages twist drawing closer, some observers expect a move aimed at breaking through the Ichimoku cloud.
The backdrop is a wait for events in the US markets. Nvidia's earnings announcement and comments from Federal Reserve officials at Jackson Hole are expected to influence the market's direction. Accordingly, close attention is also required to movements in the yen exchange rate and long-term interest rates.
US ISM-related and employment-related indicators are scheduled for release this week, and the resulting movements in interest rates in Japan and the US, as well as the rotation of funds, are likely to have an impact. The short-term focus for Nikkei 225 futures is whether they can break above the range between the 25-day and 75-day moving averages.
The market's reaction to Nvidia's earnings was limited, but risk appetite could return depending on the Federal Reserve's monetary policy statement and movements in interest rates. Trading volumes remain thin, and the futures market warrants careful monitoring.