The Nikkei has a erected a Tokyo Tower rivaling the Dow’s Trump Tower in the US.
Indeed, for a while now NFTRH has been tracking the prospective look of Japan vs. US with charts like this daily…
With the Abe/Kuroda stranglehold still intact…
With Abe’s blessing, Kuroda seen heading for another term –The Japan News
The Yen is at key support on the daily chart.
And here is the big picture of both the Nikkei and Yen. The negative correlation is still largely in effect. Nikkei made an important break above the 2014 and 2000 highs and those now become support. Very key long-term resistance resides just above, at the 1996 high and the shoulders of the 1986-1991 topping pattern.
My plan has been to remain bullish on Japan as long as the US market, which it is out performing, weakens. But in this over valued, over loved and thoroughly gamed market (US, especially) profits can be reaped at any time. I have let some get away and frankly, that pisses me off. So I’ll have to at least think about selling the strenuously overbought DXJ.
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