The BoJ, which has been the most egregious manipulator of markets for years now, has a problem. All it would take to solve it is about 60 points on the NKD. 
This is a very screwed up chart, in so many ways — not the least of which is that it has no basis in fundamentals. The election of a protectionist president in the US was supposed to benefit Japan how, exactly?
But, as in the US, the narrative was adapted to fit the objective. Also, as in the US, Apr 17’s VIX smackdown prevented the next logical step — a simple 50% retracement to tag the rapidly rising SMA200 at 17940. The NKD remains the poster child for broken, heavily manipulated markets.
Beginning on Dec 20, 2016, NKD has tagged the .786 Fib at 19669 eight times and come close a couple of dozen more. There have been five near breakouts since the Jan 9 high of 19745 — only 0.38% above the .786. Are we really supposed to believe the BoJ can’t engineer a 0.38% rally?
The reality is that can do it any time they like. The timing just hasn’t been right — begging the question: is it now?
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