USD/JPY Update

While all of the averages are hanging in there in the green territory, "Sell the Rip" is the new motto replacing, "Buy the dip", there's some interesting movement in the $USD at least that may be pointing to the USD/JPY moving.

 While the intraday 1 min USD/JPY is still very hard to get a clean signal from a it tracks very close to in line with the pair, I'm still looking at the individual components. In an FX pair like USD/JPY, if you buy it, you are long the USD and short the JPY, long the first currency, short the second one listed.

The odd thing is, when the USD/JPY moves up, so does the market, this is a new correlation since the BOJ announced their QE on steroids back in April and the only FX correlation or any other that really counts. This is 180 degrees at odds with the normal $USD relationship which moves opposite the market, but for now, the pair is stronger and the market moves with the USD in the USD/JPY pair.

Above the $USD is giving one of its clearer positive signals.

The longer Yen trend, which trades opposite the market on its own is giving one of its most negative signals, this might as well be a USD/JPY positive divergence which we already saw on the 60 min chart, but these are 1 - 15 min, a lot closer. In the case of a shorter and longer timeframe, the shorter would be more of a timing signal while the longer would give you more of an idea of what kind of power is behind it, a 60 min positive is quite a bit of power, but ultimately the clearly negative 4 hour trumps it, just not immediately.

Note that we even have the potential head fake move that we see 80+% of the time before any significant reversal.