A 13% appreciation of the yen versus the US dollar since June, a relief rally in oil (down) approaching quickly, and a bullish intermediate-term price pattern indicate strongly to me that "Japan Inc" and the Japan iShares ETF (EWJ) are ripe for the emergence of a powerful advance. The enclosed daily chart of the EWJ shows the upside pivot off of last week's low at 13.18, which my work indicates inaugurated a new upleg that should propel the EWJ to the top of the 18-month pattern above 14.70. Only a plunge that takes out 13.18 wrecks my current outlook.



Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com, a real-time diary of his technical chart analysis and trading alerts on all major markets. For more of Mike Paulenoff, sign up for a free 15-Day trial to his MPTrader Diary by clicking here.