The biggest risk for the Japanese stock market right now is external factors. If the U.S. markets fall, that would in turn have an impact on Japanese stocks.
Because Japan is an energy efficient country, up until now higher oil prices just meant that resource-related stocks would advance and it wouldn't be a negative for any other sectors.
The Nikkei is likely to stay underpinned at around 12,400 for now, about 2 percent above its 20-day moving average.