Japanese swingLooks like we are on our way up towards a double top , before a calamitous drop back to February lows. Views obviously subject to change, but for the moment, the coast seems clear for the bull
Trade ideas
Long on Japanese EquitiesShould equities break down further I will buy at these levels. Note that today (Mar 25) it is resting at support but other equity indices eg US have further to fall, so I think more decline is possible. And if so this is where Id enter
EWJ(4hr chart). At resistance, Bearish Bat, AB=CD.EWJ(4hr chart). Bearish Bat, AB=CD.
Exhaustion Gap.
Japan is testing a strong daily support zonePrevious trend line (should act as support) and 3 MA lines will try to support $EWJ breakout attempt
If that breakout is real EWJ should bounce from here higher
If it'll close below the 200 days MA line - BOOM! Crash and burn..
Tomer, The MarketZone
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Potential Triple Bottom?Solid support at $11 could suggest a bullish descending triangle continuation pattern
V-sahped reversal looks good for Japanese ETFLast session high volume move to $12.40 has the underlying ETF on the cusp of a break through.A move above this level could give significant upside.
How to Hedge Currency from Foreign ETFs.With Stronger Dollar, you guys always wondered how to hedge those currency correlation. Here is a list of combinations by Wisdomtree ETF to Hedge the currency correlation and to have a double accelerating investment, for those who want to trade the Foreign ETFs from USA.
Japan - EWJ - DXJ
Europe - IEV (or) VGK - HEDJ
Germany - EWG - DXGE (or) HEWG
Korea - EWY - DXKW
The List of ETF to the left are popular means to invest in Foreign Stocks, The List of ETFs on the right list Hedged ETFs, taking the currency correlation out of the equation. Comes in very handy, if you understand the global money movement.
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.
japan announced stimuls japan announced stimuls last weeks and that caused Bulish direction , but now we have a reverse toward 11.50 to cover the Gap .we still have a high volume with huge increasing seen at EWJ Options contracts . we have 150% Strong Call volume to Call open interest ratios indicating that we will have a bulish direction seen toward Dec .we could recommed Buying 4 Dec Call Strike 12 at 0.16 Cent .which is too cheap
EWJ Correction SHORTThe Japan market is now solidly in a
correction area. I am waiting for a weekly
fractal signal for my setup. Sell 2 ticks below
that fractal.. Price is now solidy below the blue jaw line.
It has been 28 months for a correction
in the US markets. Markets are inter connected and
often the Asian markets lead for a good canary in the coal
mine
Japan moves higher hereThe Japanese yen has been methodically moving lower since mid year and a lower Yen benefits Japanese exporters. I like EWJ here since the Yen is making lower moves against the US Dollar, Euro, and other currencies as well. Together these boost Japanese corporate profits. Since the May 2013 peak price has been swinging back and forth and here is on the precipice of a breakout. I think we get it. See the chart.
Japan Joining the Asian BreakoutQuite a few asian market's are showing sign's of strength and breakout out of long term resistance levels. Japan has joined the party, and this time does appear different as strength is helping to confirm price action, along with China, Vietnam, and others.
