According to GameWad the game will feature "motion capture" from the Wiimote which is then represented on screen.
"By swinging the Wii Remote as players please, in-game characters will perform the exact sword actions that players are thinking of. The Nunchuk is mainly used for body movement, but by shaking the Nunchuk it's also possible to block incoming attacks, evade dangerous situations, and to perform other unique moves. And there are various moves that can only be pulled off by combining Nunchuk and Wii Remote actions."
You can also checkout the trailer for the game here: