Yen Looks Like Market sees Short Term Support-Bigger Picture Here Too

First lets go back and look at yesterday's Yen/SPX correlation, a lot of people didn't believe this was a valid correlation or made any difference, it's amazing how people need immediate intraday gratification and miss the big picture, the big opportunities, it's what I called, "Getting Lost in the Lines", missing the forest for the trees essentially.

Yesterday's correlation, perfect...

 Yen in orange/SPX in green on a 1 min chart of yesterday to 4  p.m., that's a nearly perfect 1.0 correlation.

Fast forward through this morning...

You can split hairs, but no other currency correlation is so high, this in part has to do with the "Carry trade" that is Yen based through multiple pairs going south and getting more expensive or even causing losses at leverage that can be 200:1. This is how institutional money ramps up leverage of their AUM to try to outperform, but leverage cuts both ways.

Now the reason I say the SPX/market could get near term intraday support and the bigger picture-this doesn't mean the "Far off picture", it's here, it's just the big picture we have been following, it's the real opportunity in this market that may be once in a lifetime.

 Yen 1 min intraday is starting to show an intraday negative signal after moving up on Nikkei weakness all night.

This would suggest intraday support/strength for the market.

Yen 5 min also shows the same signal, not big, but enough for intraday support.

Remember the Yen and SPX move opposite.

Yen 15 min, showing the right side of the rounding bottom, remember last week I said the rounding bottom was more than halfway complete? This is the right side as it moves up and punishes the carry traders.

****Yen 60 min is a perfect example of several of our concepts 1) A reversal is not an event, it's a process, note the positive divergence through the base. 2) Head fake moves occur in 80+% of all reversals on every timeframe. 3) Head fake moves are some of the best timing indicators we have for a reversal if we know the base is real from 3C accumulation. Remember right after I said the base was more than halfway finished, the very next day the Yen broke support for a day under the yellow trendline with 3C accumulation, that was the head fake move confirmed by 3C, right after that, they Yen started to move up on the right side of the rounding base.

 Yen 4 hour large leading positive divergence, we already knew from this chart that the Yen would head higher, this is why I wrote Currency Crisis Part 1 and 2 back in the middle of April, it was apparent way back then that we'd see a big change in the market and the Yen and $?USD would be at the center of that change. I wrote this LONG before the Yen correlation became as obvious as it is now, because I knew the Yen was the central currency in the Carry Trade.

The $USD, also addressed in the articles has broken out of a major base since then and made new highs!

This is the 1 min intraday $USD/JPY which was slammed overnight with the Nikkei, the index followed the $USD/JPY wiggle for wiggle.

Now the pair look to head higher intraday ONLY, confirming the Yen intraday signals and suggesting market support.

We'll keep an eye out for opportunities here.