Friday, April 5, 2013

Yen Looks to be Under control for now

So I'm going to bed, I wanted to see what was going to happen, but it looks like short term the Yen is under control, but it does appear that won't last for long. The EUR/USD seems to be gaining some strength near term and all of the above seems to have helped ES.

 The 1 min Yen chart has a deeper negative divergence so it looks like they have halted the climb for now, I'd guess the BOJ intervened in the market.

 However the 5 min chart's negative divergence before the BOJ meeting that sent the
Yen lower looks small compared to the positive divergence there now so I have to wonder how long the Yen will be under control, when it slips (assuming there's no other Central Bank intervention) and heads higher, I can't see how that can be construed as good for the market.

 The EUR/USD looks like it's going to hold up  bit longer and help support the market.

And ES seems to appreciate the situation under control for now.

A lot happened in the last hour so who knows what it looks like 6 hours from now, I'd just say when smart money invests money for a move, they generally see it through, but this Yen thing could really get out of control, especially when you think about all the traders who jumped in on the Yens crash lower last night, if it rockets higher, that would explain why the CME hiked Yen and Nikkei futures after the close yesterday.




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