Japan (JPN) : negative watch in our Watchlist – 25/08/17

We integrate the Lyxor JPN ETF (Topix Japan Index) into our Watchlist in negative watch, as a result of technical deterioration. The costs of this ETF are 0.45% for a high AUM  of 1267M €.

• The rise of the Yen against the USD is gaining momentum which is expected to hurt Japanese exports. Moreover, despite a better economic performance, Japan's GDP growth was nil in Q2.
• Technical degradation is becoming worrying, with an EMA 13x26 weekly negative crossover that has just been confirmed and the monthly MACD has also crossing downward. Two signals that in our opinion indicate a probable deepening of the correction in progress.

JPN : Monthly data

JPN : Weekly data