Would A Lower USD Help Japanese ETFs?

Someone asked recently, if the USD dives vs the Yen, will that help Japanese ETFs? I didn’t know there were Japanese ETFs. A quick Google and I found “iShares MSCI Japan Index Fund (EWJ), a top-flight ETF offering broad exposure to the Japanese stock market.”

Here’s what caught my eye; that same reverse head and shoulder bottom, except this time we see a breakout above the black line I drew in.

Recently, we had a video by Adam Hewison on the USD/JPY pair and received a SELL signal on the USD. I wanted to see if the EWJ ETF traded opposite the USD. Here’s the chart that compares the two:

The chart shows in the last year a peak in the USD and an exact low in EWJ. The chart also show a peak at around the 9.60 area every time the USD fell near the 78.0+. Now, we see a breakout in EWJ. I think EWJ is forecasting a new low in the USD vs the YEN.

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