With the start of February, Asian equity markets have entered their period of seasonal strength, which starts in February and typically lasts into late April. As Japanese equities have retraced significantly from their highs in 2015, the BoJ on Friday surprised financial markets with a monetary policy change towards negative rates. The BoJ’s aim was to inflate assets, and to devalue the Yen further, and hence why we are seeing a good investment rational for investors to re-enter Japanese equities at current prices. A closer technical look at the Nikkei-225 shows that is in process of a clear reversal. Our 3- 6 months price target for the $NIKK is 20,150.
