Always consider hidden risks
SP500 and the Yen: Follow the Yen My Dear ?
February 23 2016 ( From TradingView )
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In these uncertain times, it is interesting to look the behavior of
the YEN ( top panel - candles ) in relation to the Mighty SP500
( bottom panel -bar chart ) on the chart below.
Following the YEN can gives us a clue about the next trend in the
Mighty SP500... Interesting to note that in both cases ( Yen and
SP500 ), both lows made on August 24 2015 have been rejected
violently and also near peaks on November 2015.But few of us realize that the Yen broke a Monthly Uptrend Channel that started back in October 2012. All that when the BOJ ( Bank of
Japan ) announced their new negative rates policy on January 29 2016.( See first chart below )The Mighty SP500 broke already its Monthly Uptrend Channel, earlier than the Yen but the keep the same trend. ( See first chart below )
And quite impressive the daily relationship between the Mighty SP500 Index in Yen ( SPY ETF times the USDJPY exchange rate - candles ) compare to the Nikkei 225 Index ( Red Line ) on the second chart below.
Read Also from Jan 29 article: Bank of Japan Adopts Negative Rates, Keeps Asset-Buying Target
"Chance favors the prepared mind."
SP500 and the Yen: Follow the Yen My Dear ? $SPY, $USDJPY #Trading #investing #yen #SP500
SP500 Index in YEN ( SPY ETF times the USDJPY exchange rate - candles )
Nikkei225 Index ( Red Line )
YEN (USDJPY - Candles - Top Panel )
SP500 Index ( Bars - Bottom Panel )