The Yen (Dollar) has been clinging to the 120 level at all costs. A break below the two month range would be the last nail in the coffin...
"Risk-averse investors are becoming the nemesis of Japanese Prime Minister Shinzo Abe."
"The yen is the best-performing major currency this quarter...Options suggest there’s an almost even chance of a gain to 115 per dollar by Dec. 31"
“The BOJ is approaching the limit in doing quantitative easing and so is expected to reserve its powder for a more serious market rout in the future.”
The S&P (red) is clinging to the August lows:
Short-term, a critical divergence has emerged between the S&P 500 (red) and the Yen. Yen (Dollar) strength has prevented full fledged S&P meltdown...
Aussie / Yen (red) confirms the S&P:
Yen/Dollar Long-term: "Damocles' Sword"
...All while carry traders unwind their Yen shorts in size...
With Emerging Market Debt and Emerging Market currencies at multi-year lows:
I will go out on a limb and say that a "successful retest" of the August lows wouldn't look like this...
(Blue arrow shows August weekly low)
