Nikkei - Fake Breakout or a usual shakeout after breakout?

The above is the weekly comparison chart of the Nikkei (candles) and USD/JPY (bars). We can clearly observe that the benchmark index closely follows the movement in the Yen.

Fake Breakout - The index had seen a bullish break above the descending trendline. However, the follow through has been weak. In fact, the current weekly closing is back below the descending trend line.

Shakeout after Breakout - However, this could also be a usual shakeout after the breakout. Such moves are often seen on larger time frames like - weekly and monthly. Furthermore, the Dollar-Yen pair has formed a nice rounding bottom formation over the last few months. This increases the likelihood the Nikkei index gaining strength once again in the near future.