Thursday, May 30, 2013
USD/JPY Dollar/Yen Intraday Chart
The weaker yen is the main driver of equities markets these days and created the new highs on the SPX. A weaker yen is a higher dollar/yen and higher equities. A stronger yen is a lower dollar/yen and lower equities. The BOJ easing weakens the yen resulting in the obscene rally in the Nikkei and U.S. equities over the last three months especially. The red arrow shows the action overnight where the yen strengthened, dollar/yen dropped like a stone through 101 down to 100.50, creating the Nikkei sell off and weak U.S. futures. Note over the last hour or so the green arrow which shows a dramatic reversal higher for the dollar/yen (weaker yen) so the S&P futures leap higher to +7 at this writing. The central bankers control the markets. Very simply, if you are bearish equities, you want to see a stronger yen (lower dollar/yen) and if bullish, you want the weaker yen to continue. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.