A Turn in USD/JPY?

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Includes: JYF, JYN
by: Kathy Lien

There are many reasons to believe that USD/JPY will head lower in the coming months, most of which center around the weak US and global economic outlook.

However there is one reason why we could see a turn, and that is the correlation between USD/JPY and the VIX (which measures the volatility in the equity market). Usually when the VIX (which is inverted in the following chart) rises, USD/JPY falls because high volatility tends to propel investors into the safety of the Japanese Yen.

Do you think 87 is the bottom in USDJPY?