Capital Rotation and Liquidity Sweep Support EWJ Upward Reversal

• • The one-hour chart confirms a mild reversal structure after the price successfully tested the macro liquidity floor.
• • Institutional market participants appear to be utilizing discount prices to re-accumulate targeted equity exposure.

The MSCI Japan ETF consistently provides targeted exposure to high-valuation companies in Japan. Despite a recent drop in net asset value (NAV) over the past few days, the market structure is beginning to display promising reversal signs. The one-hour timeframe chart illustrates that following a downward sweep of lower boundary liquidity, the price successfully found a solid structural support floor at the $89.61 (Rp1603661) level. This technical setup of stable supply absorption highly favors a short-term capital rotation back into Japanese equities. Buying momentum is projected to incrementally push the price up to breach the local equilibrium area at $92.82 (Rp1661107) over the next 4 days. If global macro sentiment remains supportive, this recovery rally has the opportunity to continue and fill the upper price void at the $94.20 (Rp1685803) level.

Abrupt yen currency policy interventions risk beating back exporter equities. This recovery structure is practically invalidated if the price falls below the $88.64 (Rp1586300) protection threshold.