Japan at New Highs = Significant

Sure, we know the US is flying around up there in blue sky. And we know that the US “man in the middle” is also finally in blue sky.

xvg

But on the global picture the one I continue to find the most interesting is Japan, because it went decades in the grip of deflation and chronically under performed most other markets.

Today Yen-hedge Japan (DXJ and/or HEWJ) is breaking to a new short-term (daily) high.

dxj

That is significant because the Nikkei index was already above a key long-term breakout point before today’s surge. This will be interesting.

nikkei, yen

[edit] neglected to mention, I am long DXJ.

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