The Yen Crosses suddenly look weak, especially Euro Yen, Aussie Yen and Kiwi Yen.
Every second day I look at 50 (fifty) currency pairs, commodities and indexes, looking especially for new 20 day highs or 20 day lows.
These three Yen pairs are almost always highly correlated to equities, in many cases over 90% correlated to the Dow.
So it is very unusual to see these pairs close to new 20 day LOWS when the equity markets are strong.
It is an even better signal that all three are signalling lower at the same time.
I had orders in on each of these pairs and Euro Yen just triggered (albeit a 17 day low, not 20) and Aussie Yen and Kiwi Yen are less than 25 pips away from triggering.
Perhaps they are going to lead equities lower? I don’t know but the very fact that they are making new lows says something about the strength of the Yen and the relative weakness of these other three currencies.
“Creating the Perfect Trade”
Disclosure: Short Euro Yen