There was no change to the Franklin International Rotation Model this week, so we look at the Franklin FTSE Japan Hedged ETF (FLJH)

There was no change to the Franklin International Rotation Model this week.

International equities have had a strong start to 2025, and Japan is arguably the strongest international region after putting together a strong past few months. Within our Asset Class Group Scores page, Japan holds the highest average fund score of any group at 5.22. Additionally, the group holds the highest score direction of any group, highlighting its return to strength over the last few months. Those looking to get exposure to the region could look towards the Franklin FTSE Japan Hedged ETF (FLJH). FLJH holds a near-perfect fund score of 5.75, which is 0.54 points higher than the average Japanese equity fund. The fund returned to a buy signal in late April of this year and has traded in a positive trend dating back to 2020. FLJH also holds long-term relative strength versus the broader international equity space, as it has been on an RS buy signal versus the iShares MSCI ACWI ex US ETF (ACWX) dating back to 2013. Recent action higher has seen the fund hit new multi-year highs, pushing the fund into overextended territory as well. FLJH has an overbought/oversold (OBOS) reading north of 110%, so those looking to buy the fund should wait for some pullback or consolidation. Initial support lies at $27.50 then $26.50 while previous resistance in the lower $30s could serve as future bounce points as well.