iShares MSCI Japan ETF (EWJ)
EWJ is within striking distance of new high ground above $12.43, but it also needs to fall just 4.5% to cross below its lower trendline.
Japanese equities have benefited from the tailwind of extremely aggressive central bank policy, but this is a double-edged sword. If quantitative easing of this magnitude fails to create sustainable economic growth, investors will question whether there’s anything that can bring the country out of its decades-long doldrums.
Watch the chart to gauge whether this year’s rally has legs, or whether the EWJ rally is about to hit the wall.
As of this writing, Daniel Putnam did not hold a position in any of the aforementioned securities.