It’s been interesting to see how currencies have been doing very little, all the while The Nikkei as well SP 500 – continue to weaken.
We’ve now got a “weekly swing high” in Nikkei ( where this weeks “low” takes out the low of the previous week ) which is ( in general ) a pretty solid suggestion of future direction, although still no “reversal” in Yen.
The top in Japanese stocks looks to be “confimed”.
It’s interesting to note “the degree” of selling in risk, and it’s effect on any individual currency as with the example of Nikkei and Yen….it appears we “really need to see some selling” to get that Yen up off it’s bottom ( jumping a little bit this morning ).
USD continues to push at it’s near term highs…high’s that are “far higher” than they should be at this point as the USD / EUR / GOLD / COMMOD cycles are all ( as they are all so connected ) completely stretched “past” stretched.
I’m holding short USD on first round of entries – currently only a couple pips in the red.
Volatility ( all the way around ) is DEFINATELY picking up, and it would be my thinking that the degree of selling we are seeing “increases” – considering that most of the Major Indexes are again in the red / weak.
A turn in USD has to factor into all of this here soon, and Yen so close to finding it’s low.
You don’t want to be on the wrong side of a rising Yen.