Since the start of the year the index rose more than 14.0% and this past week moved up more than 3.0%.
Last week the index rallied with a wide range and closed near the high of the week also closing above previous week high suggesting a strong bullish momentum.
The Stochastic is displaying a strong bullish momentum and is above the 50 mid line.
The Nikkei 225 in a well-established accumulation phase, trading above all three 10, 50 and 200 week moving averages.
Expecting an upward move to year high at 20.985 on a break above a weekly resistance at 20.140 (scenario 1) and a bounce from a weekly resistance at 20.140 could push the index down to a key level at 19.200 (scenario 2).