Eoin Treacy's view It has been the Fullermoney view for the last year that the Japanese stock market was in need of a catalyst, in the form of a weaker Yen, to inspire a renewed sense of optimism. The Dollar found at least short-term support against the Yen a month ago and continues to rally towards the 200-day MA. It has encountered resistance in the reigon of the trend mean on a number of occasions in the course of the three-year downtrend and will need to sustain a move above it to indicate a return to Dollar demand dominance.

The Nikkei-225 has been ranging mostly above 9000 since mid-2009 and is currently rallying from that area. It will need to hold a move above 11000 to confirm a return to medium-term demand domincance.