The Nikkei's relentless bull-run has raised concerns if a correction is on the pipeline. Chart analysis, however, suggests otherwise.
There are two significant features on the Nikkei weekly chart. The first feature is the long term up trend line. The second feature is the application of trading band analysis.
The long term up trend line on the Nikkei chart starts from the low of 11,805 in 2013 April. This line acts as a support line from 2013 April until 2014 February. The fall below the uptrend line in 2014 April changes the nature of the trend line from support to a resistance feature. From 2014 April until 2015 March the uptrend line acts as a resistance level. The Nikkei continues to move up but the line provides resistance to the up move.
The move above the trend line in 2015 March means the trend line again acts as a support level. This is an additional bullish feature of the uptrend. When the Nikkei retreats there is a high probability it will test the trend line as a support level and then develop a rebound rally and a continuation of the uptrend.