Berkshire Hathaway just announced that over the past year it acquired a little more than a 5% stake in five Japanese companies: Itochu, Marubeni, Mitsubishi, Mitsui and Sumitomo. Despite these seemingly large positions, they add up to only 1% of his Berkshire holdings. Should we be like Warren Buffett, and turn some of our portfolio Japanese? To answer that question, lets take a look at the weekly Nikkei chart.

The Nikkei chart suggests that the Japanese index may have a bit more room to go on the upside. There are a few things we should watch from a technical perspective as the index approaches a fairly significant level of resistance near 24,000. You’ll note on the chart that the Nikkei has had a fairly reliable sideways trading range between roughly 20,000 and 24,000. Beyond the COVID crash in March, the index has had only minor spikes outside of that range since 2017.