Updated chart shows the importance of the 10.2 level as well as the M Top. Positive divergence is setting up but not until price falls further to 9.2-9.3.
EWJ Japan daily chart shows the key 10.2 level. A couple days ago this 10.2 support failed and then yesterday, Japan receives another 7+ earthquake; poor folks cannot catch a break. 20 MA is under the 50 MA which is bearish and now is crossing under the 200 MA. The M Top occurred in late February and early March.
The indicators were slapped hard in mid-March as the low humps show. This provides hope for EWJ bulls in respect to positive divergence setting up but this will not occur until price moves below the prior mid-March low. Thus, there is no reason to enter any EWJ long untl price comes down to the 9.3 area and the all-clear for a more sustained bounce should not occur until the 9.2-9.4 area is realized. An intraday spike down to 9.2 or 9.3 should provide an attractive long opportunity for EWJ bulls with nimble fingers.
Price should only bounce from 9.2-9.3 for a short time, however, since the longer term weekly charts show a preference to explore the 9.0-9.3 area in the weeks and months ahead.
For EWJ chart, also a dollar/yen chart showing the intervention, google keystone speculator or view at stockcharts public charts keystone speculator.