The USD/JPY continues to hold up from the longer term 50% fib, near the 100 level, and this bounce is helping to shape up my bullish Inverse H&S pattern. I’m wondering if this pair is going to join in on the S&P500 rally?
USD/JPY: the bounce up from the 100 area and 50% fib is helping to shape a bulish-reversal inverse H&S. The daily chart shows a recent bear trend line possibly coming in to play:
S&P500 weekly: continues higher despite the lack of momentum:
USD/JPY vs S&P500: these two have been divergent for most of this year but the recent bounce with the U/J from 100 just might be the start of a new wave of positive correlation. I’m not making any prediction here but simply suggesting this is one to watch out for.