Nikkei 225 fails to jumpstart the week, falling back towards 22,000.00

• Japanese equities are hesitating with major corporate earnings inbound, as well as unsteady Japanese PMIs expected.
• Rising Treasury yields are making traders cautious about their next steps.

The Nikkei 225 index is slipping back below the 22,100.00 level as apprehensive traders failed to keep early Monday's momentum going.

Japan's leading equity index kicked off the week with a bullish snap to 22,200.00, but the move evaporated quickly as earnings season and rising Treasury yields are leaving traders cautious in equities.

Some of the world's largest major international companies will be dropping their earnings reports this week, and Japanese equities will be feeling the strain in the run-up to reports, on top of already-taut Japanese manufacturing expectations for April.  

PMIs might be off to a good start, with Japan's Nikkei preliminary Manufacturing PMI printing a 53.3, beating the previous 53.1 and a clean reversal of the expected 52.6 contraction.

Nikkei levels to watch

The Nikkei's run-up from a March low near 20,300.00 has seen the equity index walk back almost half of the major declines following January's major tumble from a high of 24,190.00, and the current challenge for bulls will be to make a clean run over last week's highs near 22,350.00 while avoiding a decline back into the previous resistance zone near 21,900.00.