FX Looks To Be Setting Up Again

It was interesting that last night we could see clearly that we'd be heading down to the bottom of the major averages' range from this week based on the Yen's chart alone (15 min positive). Now these same charts we have really been watching since before the New year and have been so predictive are now moving again.

 The intraday 1 min Yen futures (Yen down and USD up makes the USD/JPY rise and takes Index futures with it). The Yen is clearly negative at today's high on volume and has deteriorates since as it looks to be a sloppy range, but it seems like there's more to appearances here.

Yen 5 min (remember the divergences will move from short to long here) went from the down trend that allowed some strength in the market to the positive divegrence last night that allowed it to pullback toward the lows of this week's range as was predicted last night. Now there's a clear negative divergence on this chart as the highs were hit and that same congestion area is seeing a continued negative divegrence.

 This is the 15 min Yen from last night, the white positive divergence is from last night and it did what it was suggesting and sent the Yen higher, thus the market lower today, but has made a slight new high (common head fake) in to a relative negative divegrence. I suspect the 1 and 5 min charts will continue to create more deterioration on the Yen 15 min chart.

The $USD being the other half of the pair...

 The 1 min chart sees a leading positive at the open on some volume and then again around the Yen's highs this afternoon.

The 5 min chart has a clear positive trend which is confirmation of the Yen's signals

These alone are of not much use, it's the two moving that move the USD/JPY Carry Cross and that's what moves Index futures.

The USD/JPY 1 min chart (typically we can only get 3C signals on a 1 min chart with the pairs) shows a clear negative divergence from last night as the Yen went positive 3C and then positive trend, sending the USD/JPY lower.

Note the flat range ALL DAY today in the pair and then in to the lows caused by the Yen making an intraday high, we have a 3C positive divegrence and it's leading as well, the flat range is an important part of the overall signal as is the congestion.