The Japanese markets followed the U.S. markets in a decline the end of this week and the strong yen also put some pressure on the markets. The exchange traded funds were also down, iShares MSCI Japan (EWJ) lost 1.2% while iShares S&P/Topix 150 (ITF) was down only 0.7%.
The Japanese government expressed concern over the rapid appreciation of the yen, worrying it could undermine economic growth and corporate profits. But the country still shows strong economic fundamentals.
EWJ continues to trade above its 200-day moving average and is 4.5% off of the high reached on Tuesday. Using a stop-loss point will help in making the decision when or if it is a good time to get out of the holding.
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