As shown on the weekly chart below, the Nikkei225 will probably break end of this week on the upside the 18 months down trendline resistance. This break has high probabilty to be significant as this TL had 5 touching points , 3 of them in the last month.
Japanese market held support on the 200 W MA in the after Trump election and has just crossed the 50 weeks MA. MACD is nicely up and crossed the 0 line recently. ADX (Second bottom chart) is showing positive signs as well : the black line indicating existence of a trend (if above 15-20 area) is reversing while the green one indicating positive trend is turning as well .
We keep – advise to buy for those who did not previously – in portfolio the iShares Currency Hedge Japan ETF (Ticker : HEWJ) that was bought in september (See Sept 21st post) . This tracker is a a currency hedgd one so a pure play on Nikkei performance and immune to JPY movements versus USD.