The Nikkei 225 ($NIKK) is getting a boost from weakness in the yen. Notice that the index broke resistance as the Yen Index ($XJY) broke support. The Nikkei benefits because a weaker Yen makes Japanese exports more competitive and this helps the overall economy.
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The weekly chart of EWJ, the Japan iShares ETF, looks much less promising, so far, in my opinion. A weekly close above 9.40 will be required to confirm a new uptrend. On the other hand, downside risk looks quite serious. Continuation of the existing downtrend would complete a giant head and shoulders top formation and presage a further fall of 50%.
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