Carry Trade Update

So far the market is acting in a very normal way, waves.

As far as my suspicions about the USD/JPY, they appear to be on track.

 This is the intraday Yen, earlier the positive divgerence was smaller, it has built out as I suspected earlier today. You'll notice price is forming a rounding (more lateral) bottom as the divegrence continues, this is the one that will send USD/JPY/Index futures lower when it fires to the upside, but to break $102 solidly, it's going to take a decent divergence here.

 The USD's negative divegrence continues to build, it's substantially stronger than it was earlier.

The USD/JPY itself is seeing a continued, larger negative divegrence building, there was almost no positive divegrence around 3 a.m. when it switched directions and lifted Index futures which were moving down in the early hours.

In any case, as far as the rest of my suspicions, we'll have to see, so far I don't see anything jumping off the chart, it looks like a very normal day, however I think we are right on track with the USD/JPY which has reconnected to the Index futures correlation as we saw overnight, there's still at least a 60-70 point disconnect in the correlation.