TOKYO, Sept 16 (Reuters) - The Nikkei stock average is likely to extend gains on Thursday, drawing on momentum from the previous day's surge after Japan intervened in the foreign exchange market to weaken the yen.
Nikkei futures traded in Chicago closed at 9,650, up from the Osaka close of 9,470, pointing to a higher open.
"The Nikkei is likely to consolidate around the 9,600 level today, with the dollar staying above 85 yen following yesterday's intervention," said Kenichi Hirano, operating officer at Tachibana Securities.
The Nikkei jumped 2.3 percent to a one-month closing high of 9,516.56 on Wednesday after Japan's first intervention in the currency market in six years.
"The key point is whether the Nikkei can remain above its 75-day moving average. Market sentiment will get a lift if it can do so," said Hirano.
Seen as a bullish signal, the Nikkei rose above its 75-day moving average for the first time in four months the previous day. That average is currently around 9,456.
Market players expect the Nikkei to move between 9,400 and 9,700 on Thursday.
Focus going forward is whether Japan can prevent the yen from strengthening again without any foreign assistance, and whether it can take steps to help the economy and fight deflation while fending off upward pressure on the yen.
The dollar traded at 85.60 yen, up from a 15-year low below 83 yen struck on Wednesday.
The government and Bank of Japan carried out their largest single-day yen-selling intervention on record on Wednesday, with the total amount seen exceeding 2 trillion yen ($23.3 billion), the Nikkei business daily said.
U.S. stocks advanced on Wednesday but remained hemmed in a recent trading range as disappointing economic data hindered the S&P 500 from breaking through a stubborn technical level.
STOCKS TO WATCH
-- Mitsui & Co
Mitsui & Co said on Wednesday it will join a nickel project that Sumitomo Metal Mining Co Ltd operates in the Philippines. (Reporting by Shinichi Saoshiro; Editing by Chris Gallagher)