The surprise market of the majors so far this year continues to be Japan. Let’s notice that the iShares Japan Index Fund ETF (EWJ) has extended last week’s strong upmove. In fact, EWJ has climbed above the prior high at 10.16 from December 4. This is a very positive technical sign and should represent the beginning of the acceleration period into a new upleg that projects above the September 2009 high at 10.38 towards my next optimal target zone of 10.80-11.20. At this juncture only a decline that violates 9.92 will begin to neutralize my current constructive outlook.



Mike Paulenoff is a 26-year veteran of the financial markets and author of MPTrader.com.