FXStreet (Bali) - The Japanese benchmark index Nikkei 225 has erased the majority of its gains in the first hour of open business in Tokyo, with the index last traded at 18,976.00 (+0.15%), off its highs just below 19,200.00. Nikkei 225 shrugs off S&P500 lead Earlier today, Japan Industrial Production (MoM) came above forecasts at 1% in September vs -0.5% expected, a positive release not enough to spur further buying momentum. Solid gains in the S&P500 overnight, up 1.18% in response to a more hawkish than expected FOMC meeting, have reinforced the bullish structure in the Nikkei, which should now regain the 19,000 psychological level to resume its upside potential ahead of Friday's BOJ, where risks of further easing still exist. Bank of Japan to determine next directional bias Should the Bank of Japan announce an expansion of its easing program during Friday's policy announcement, in what would represent yet another effort to enhance the inflationary pressures in the economy, expect the benchmark Japanese equity index to surge higher. On the flip side, failure by the central bank to telegraph new clues other than the old rhetoric, and both the Nikkei 225 and the USD/JPY should be in for a wild ride south. For more information, read our latest forex news.