Daily Brief Technical Analysis: USDJPY - Is USDJPY Confirming a Return to the Long-Term Uptrend? and more

In today’s briefing:

USDJPY – Is USDJPY Confirming a Return to the Long-Term Uptrend?
EM Outperformance to Continue (Vs. EAFE) — Add on a Pullback; DXY Needs to Hold Below $106
Zhejiang HangKe Technology-A (688006 CH) – Confirming a Tradeable Bullish Multi-Month Opportunity

USDJPY – Is USDJPY Confirming a Return to the Long-Term Uptrend?

At TMA we deliver high probability outcomes by focusing on our 3 pillars of technical analysis. •1) Response to key levels. •2) Price action. •3) Momentum confirmation.
Last week delivered a host of bullish MT USD reversal patterns across USD/G10 and USD/Asia pairs.
USDJPY has responded impulsively to critical LT support around 127.50. February has the potential to confirm a return to the multi-year uptrend with aggressive targets around 175/180.

The MSCI EM vs.EAFE ratio (local currency) shows EM has outperformed relative to EAFE since the DXY peaked in November 2022, and also shows signs of reversing the 2-year downtrend.
As long as the DXY remains below $103.50-$106, we expect outperformance from EM to continue.
China/Hong Kong, Greece, South Africa, and Mexico stand out as attractive countries. Our top actionable Sectors include Communications, Consumer Discretionary, and Technology. We highlight 76 attractive EM stocks.

At TMA we deliver high probability outcomes by focusing on our 3 pillars of technical analysis. •1) Response to key levels. •2) Price action. •3) Momentum confirmation.
January completed a bullish 3 month reversal pattern in 688006 CH and thus confirmed a likely MT bottom.
688006 CH has had an incredible pivotal relationship with its 50 week MA since 2020. A weekly close above the 50 week MA will confirm a high probability MT uptrend.

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