The Nikkei 225 ($NIKK) came to life over the last two months and surged above its March high with a massive surge. Notice that the index held above its 2009 lows and also broke channel resistance in the process. This move opens the door to the next resistance zone in the 13000 area. Weakness in the Yen is helping the export driven Nikkei immensely. Notice that the Yen Index ($XJY) broke support at 120 to reverse a five year uptrend. A weakening Yen makes Japanese exports more competitive and Japanese exporters more profitable. 2013 could be the year of the rising sun.
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About the author:
Arthur Hill, CMT, is the Chief Technical Strategist at TrendInvestorPro.com. Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London.
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