Japanese Equities Are Breaking Out To New HighsThe weak yen helped Japan January exports soar 17% vs the +11.9% estimate, up for the 5th consecutive month. Nissan Motor and Honda Motor are looking to join the action and boost export sales soon.
The Japan equity ETF had been range bound between $10.60 and $12.20 until this week's upside breakout. Look for the $EWJ to complete a measured move to $13.80 later this year ($12.20-$10.60=$1.60+$12.20=$13.80).
Open interest in the Apr 2 weekly $12.50 calls jumped to 70,938 on Friday from 6,483 contracts (buying from $0.11-$0.16). Mar 27 weekly $12.50 call open interest rose to 27,450 from 8,263 contracts. Another 10K+ of the Apr weekly calls were purchased on Friday as well.
