I've been watching the NIKKEI 225 Index and Japanese Yen recently, or mainly the NIKKEI/S&P ratio after it broke above the 50 day moving average. Since then it rallied towards the downtrend line, made a high of 8.557, and sold off. The ratio is back below the 2008 and 2009 lows so there needs to be a confirmed inverted head and shoulders pattern to officially battle that downtrend line. Also, a week ago I saw activity in FXY (Yen ETF) June 2011 Puts. Interesting Japanese market maneuverings going on.
I'm watching the 50DMA and downtrend line on $NIKK:SPX. EWJ looks similar to SPY. Is Japan set to exceed growth expectations in 2011? Read this Guardian article from 12/9/2010: "World's third largest economy grew at an annualised rate of 4.5% last quarter, up from the inital estimate of 3.9%". I charted out EWJ (Japan iShares) and $NIKK:$SPX after the jump.
$NIKK:$SPX (Nikkei:S&P) at StockCharts.com
EWJ (Japan iShares)