The Japan group within the Asset Class Group Scores page has moved to an almost 20-year score high at 5.23.
San Jose RS Institute: Register to join us in person for a 3-hour educational symposium on relative strength investing. This event is for financial advisors and will offer 3 hours of CFP/CIMA credit.
When: September 18th, 2025, 9 AM EST - 12 PM EST
Where: San Jose Marriott, 301 South Market Street, San Jose, CA 95113
Who: Speakers include...
John Lewis, CMT, Senior Portfolio Manager; Andy Hyer, CFP, CIMA, CMT, Client Portfolio Manager; Ian Saunders, Senior Research Analyst
Cost: Free! Lunch will also be provided.
Registration is limited to the first 75 advisors, so be sure to act fast!
Tariffs continue to be part of the daily market conversation as agreements and deadline extensions seem to occupy headlines. Among the trade agreements to occur just before the August 1st deadline was with Japan (July 23rd). Recent weeks have seen further developments in Japanese trade deal as negotiators sought clarity and additional promises from the White House.
Positive developments toward a “done” Japan trade deal have provide fodder for Japanese equities as of late. On the Asset Class Group Scores pages – which evaluates the average fund score for 134 asset class groups consisting of ETFs and mutual funds – the Japan group has moved to an almost 20-year score high at 5.23 and ranking 2nd out of 134 groups. The score direction for the group – which evaluates a group’s (or fund’s) score improvement within a six-month timeframe – resides above 3 for the first time in a decade, highlighting the abrupt technical improvement in recent months. Coupled with the near-term improvement for the country is also an overbought posture. As of close on 8/18, the average Weekly OBOS reading for the group is north of 100% for the first time since early 2024.
For perspective on the trending improvement seen within Japan, the default point and figure chart for the iShares MSCI Japan ETF (EWJ) is below. After returning to a buy signal and shifting the trend back to positive in the latter half of April, EWJ consolidated in the low to mid $70s from May to mid-July. Following the announcement of the initial trade deal with Japan, the chart completed a triple top at $76 for a second buy signal. Action in August brought improving all-time chart highs with the ETF rallying above $80 during Friday’s (8/15) trading session. As with the broader group, EWJ now resides in overbought territory and at the top of its 10-week trading band. Those seeking exposure to the fund, or other Japanese equity funds, will look for a pullback to the upper $70s or the Weekly OBOS reading falling to within an actionable range ( Weekly OBOS ≤ 60%) before considering. Prior resistance in the mid $70s may be seen as initial support, while additional may be found at $72 and $66, the bullish support line.
