(VJPN) Vanguard FTSE Japan - Ratings and Ratios

The Vanguard FTSE Japan UCITS ETF (VJPN) is a Netherlands-based exchange-traded fund that tracks the Morningstar Japan TME NR JPY index, providing investors with exposure to Japans large-cap blend equity market.

As a Japan Large-Cap Blend Equity ETF, VJPN invests in a diversified portfolio of Japanese stocks, offering a broad representation of the countrys equity market. With a significant Assets Under Management (AUM) of €2186.65M, the fund has established itself as a substantial player in the market.

Analyzing the technical data, we observe that the ETFs last price is €34.10, slightly below its 20-day Simple Moving Average (SMA) of €34.41, indicating a potential short-term downward trend. However, the 50-day SMA (€33.33) and 200-day SMA (€33.86) suggest a longer-term uptrend. The Average True Range (ATR) of 0.34, equivalent to 1.00%, indicates moderate volatility.

Combining technical and fundamental analysis, we forecast that VJPN will likely continue its upward trajectory, driven by the Japanese equity markets potential for growth. As the ETF is currently priced near its 20-day SMA, we expect a potential breakout above €35.44 (52-week high) in the medium term, driven by a combination of favorable market conditions and the funds diversified portfolio. Conversely, a decline below €29.71 (52-week low) would indicate a significant shift in market sentiment, warranting a reassessment of the investment thesis.

Based on this analysis, investors may consider accumulating VJPN on dips, targeting a long-term investment horizon, as the funds diversified portfolio and Japans equity market growth potential may drive returns over the long term.