The Nikkei 225 futures market is expected to seek a trading range this week, with investors focused on the release of US economic data and Micron Technology's results. Short-term moves are anticipated while technical levels such as the Bollinger Bands and the 75-day moving average are monitored.
Nikkei 225 futures are expected to trade mainly within a range this week ahead of the release of US economic data and Micron Technology's results. After trading near the previous week's highs, intraday activity has maintained a long-oriented flow, and levels rose during the night session.
Technically, the contract has remained above the 25-day moving average and has frequently moved above the +1σ Bollinger Band. Although +2σ may come within reach, this is a phase in which caution over overheating is warranted. Since the sharp decline in August, the 75-day moving average has acted as resistance, making a clear break above it the key focus.
In the US, the ADP employment report, personal income and personal consumption expenditures (PCE), the ISM Manufacturing Index and the employment report are due, while Micron Technology is scheduled to announce its results on the 30th. Short-term trading centered on scalping is expected as investors assess these indicators, interest-rate trends and oil prices.
Meanwhile, the market is believed to be pricing in one more rate hike by the US Federal Reserve this year, while the possibility of additional rate hikes by the Bank of Japan is also being discussed. Across the market, attention will remain focused on interest rates and oil prices, and depending on the impact of Micron's results, movements in stocks such as Advantest, Tokyo Electron and Kioxia may intensify.