Could it be recovery time for yen crosses? Attached is a chart overlay of usd/jpy, eur/jpy, chf/jpy, gbp/jpy, aud/jpy and nzd/jpy. most have bounced off medium term support levels, though the eur/jpy looks more like the eur/usd still.
The chf/jpy has been a pretty good proxy for analyzing carry trades. As eur/jpy flirted with 170, chf/jpy found a stiff ceiling around 104.65. chf/jpy looks to have bounced off a very strong support right around 100, and supporting eur/jpy through correlation.
correlations seem to break down during uncertainty or bubbles. we saw this as oil broke new highs. usdcad / oil correlation was not nearly as strong as it is at current levels. sure, on an intra-day basis you get spikes and short term oil induced action, but on longer time frames it's less apparent. the other breakdown that comes to mind are stock indexes/carry trade.
near term crude and oil both sitting on good support, so a bounce could help commodity crosses aud-nzd-gbp/jpy's and eur/usd. also, the oil VIX is at currently at a critical area. some strong topisde resistance in the very near term.
http://www.pfxglobal.com/forex-video...mes.html#Below
I like chf/jpy here. cad/jpy also gaining some momentum.
The chf/jpy has been a pretty good proxy for analyzing carry trades. As eur/jpy flirted with 170, chf/jpy found a stiff ceiling around 104.65. chf/jpy looks to have bounced off a very strong support right around 100, and supporting eur/jpy through correlation.
correlations seem to break down during uncertainty or bubbles. we saw this as oil broke new highs. usdcad / oil correlation was not nearly as strong as it is at current levels. sure, on an intra-day basis you get spikes and short term oil induced action, but on longer time frames it's less apparent. the other breakdown that comes to mind are stock indexes/carry trade.
near term crude and oil both sitting on good support, so a bounce could help commodity crosses aud-nzd-gbp/jpy's and eur/usd. also, the oil VIX is at currently at a critical area. some strong topisde resistance in the very near term.
http://www.pfxglobal.com/forex-video...mes.html#Below
I like chf/jpy here. cad/jpy also gaining some momentum.
Attached Image(s) (click to enlarge)
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