DXJ Forecast + Trading Strategies


Bullish Case: DXJ has demonstrated robust multi-year growth, with price appreciating significantly across various periods. Despite recent minor corrections, the bullish risk skew suggests potential for continued upside, supported by stable macroeconomic indicators impacting Japan-based assets.


Bearish Case: Recent flat DXJ price action and low option trading volume indicate potential overcomplacency, with a flat implied volatility structure hinting at limited short-term upside and possible minor corrections due to market saturation.


Potential Outcomes:

1) DXJ resumes uptrend and reaches $110 (+4.1%) by August 2024, 45% chance.

2) DXJ experiences a short-term plateau around current levels ($105-$107), 40% chance.

3) Unexpected minor pullback to $100 (-5.4%), 15% chance.


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April 19, 2024


WisdomTree Japan Hedged Equity Forecast

DXJ        WisdomTree Japan Hedged Equity
Price Forecast: NEUTRAL    Price Action: RANDOM (?)











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Uncorrelated Stock Forecasts

Assets with little price relationship to DXJ



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FXB Forecast + Options Trading Strategies   FXB  Invesco CurrencyShares British Pound Sterling (-0.01)


EW Forecast + Options Trading Strategies   EW  Edwards Lifesciences (0.01)


VCLT Forecast + Options Trading Strategies   VCLT  Vanguard Long-Term Corporate Bond (-0.01)


BHP Forecast + Options Trading Strategies   BHP  BHP Group Limited (-0.01)



Anticorrelated Stock Forecasts

Assets that tend to move strongly against DXJ



NUS Forecast + Options Trading Strategies   NUS  Nu Skin Enterprises (-0.93)


AMC Forecast + Options Trading Strategies   AMC  AMC Entertainment (-0.93)


UVXY Forecast + Options Trading Strategies   UVXY  ProShares Ultra VIX Short-Term Futures (-0.93)


LEG Forecast + Options Trading Strategies   LEG  Leggett & Platt (-0.93)


PRTA Forecast + Options Trading Strategies   PRTA  Prothena (-0.94)





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