Japan looks so far topped earlier this year – and when we are going to analyze Nikkei we need to look at their currency Yen – as this one is largely correlating with Nikkei.

Higher Yen means lower prices on Nikkei Index and so far I believe a lot of people are still extremely bearish on Yen so I wont be surprised to see a massive short squueze in the near term in the Yen.

This would result in a major breakdown on the Nikkei Index.

All in all – as it looks like right now I would go long Yen – stay short Japanese Nikkei.