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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