Keep in mind that there are several reasons that would suggest Nikkei 225 could pull back short-term but the risk of a strong yen and USDJPY breaking below 104.50 is a key factor that could disrupt Nikkei 225.
The previous two selloffs in global equity – US and Japan our focus – were met buy strong buying interest that resulted in a sustained rally. However, the most recent selloff and so-called rally was weak, and had no energy. It also took place on low volume. The US yield curve inversion, the Hong Kong protests and the US-China trade war are all likely to drive Nikkei 225 lower in the short-term. This is a one to two week downside move that will form a bottom.