Following the Nikkei 225 Stock Average's 285 yen gain (+1.74%) and the broader TOPIX Index gain of 24.24 (+1.46%) Monday, iShares MSCI Japan Index (EWJ) was already trading up equally as much in pre-market trading today. The Nikkei's close of 16,624.80 is its highest in over a month and this is despite a very recent reversal of strength in the dollar. With the dollar now trading at sub Y116/US$1, America investors in Japanese funds and stocks are in a position to capitalize on more of the gains being made in Japan. For investors in EWJ, this means you currently (intra-day) are just 9 pennies shy of hitting the 52-week high of $14.30 established intra-day on January 9th. Its 52-week closing high was also on January 9th at $14.26.
Since the start of 2006 there have been a few buying opportunities such as in the aftermath of the Livedoor Shock, following Morgan Stanley's cutting of its Japan weighting, and during a period of nervousness over whether the BoJ would change monetary policy.
EWJ 1-yr chart: