Using EWJ as a proxy for Japan, the chart shows little progress since the highs achieved in late 2005. From a trend analysis perspective, there are many weaker looking charts.
But those dark long candles on the weekly chart tell their own story in terms of major resistance. And the dramatic reversal in May 2006, presaged by the unmissable bearish pattern on the weekly chart (circled), show how sentiment can change so swiftly in the land of the rising sun.
At sea, twilight can look the same, whether at sunrise or sunset, but the compass will tell you whether you are looking at the rise or the set. Were it as easy when looking at Japan.
