Friday, May 3, 2013

The Yen is the Currency to Watch

Not only because it's had increasing correlation and domination over the markets, but it is the only one right now that is not just showing confirmation, but diverging.

Interesting that the 1 min chart had a night long negative divergence before dropping on the NFP which is market positive, we know the most likely direction for the Yen longer term, up which is negative for the market, but it also has a positive divergence building here, I'd rather see that divergence larger before acting on it, but I would keep an eye on the Yen, just remember it typically trades opposite the market.

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