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The Yen/Nikkei Connection:  Correction Phase ?
Mar 14 ( From TradingView, FRED )
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Correlation YEN / SP500


​Correlation since the beginning of Abenomics in November 2012 between the Yen and the SP500 have been astonishing. 

​​Even if lately, correlation have lessened a little bit, trendiness became the rule as shown by the chart below...

We must follow the Yen closely because it can become a trend changer for the Nikkei and the Mighty SP500...​​

But the most interesting, is that the Nikkei failed to break out​​ from a major resistance trendline that started on June 1996...  
​See 4th chart below...





Louis Pasteur
"Chance favors the prepared mind." 


The Yen/Nikkei Connection:  Correction Phase ?     SPY, $SPX, $ES_F, $NKY, $USDJPY



SP500 in Yen ( Left Scale )

Yen ( Bottom Scale )​


And since november 2012, the correlation has been striking even if lately, it did fade.
​
But if we take the SP500 price in Yen, then the correlation with the Nikkei225 index on a weekly basis even more surprising as shown by the chart below...​


SP500 in Yen ( Left Scale )

Nikkei 225 ( Bottom Scale )​


Nikkei

​​​The chart below shows the trendiness between the SP500 price in Yen and the Nikkei225 ( Red Line ).
The push that started lately on the Nikkei had tremendous impact on the SP500...​ And started a correction since Dec 31...
And a tremendous rally since Feb 3... To be back to consolidation mode since Feb 24.​


 SP500 in Yen ( Right Scale, Candles )

Nikkei 225 (  Red Line )​


A Too Narrow View of Markets

Too often, we have a short view of the market. In the case of the Nikkei225, in fact, a Major Resistance Trendline​​ since June 1996 is at play now as shown by the chart below... And it shows that the Nikkei failed to break the trendline...


Nikkei225