I believe Currencies are the heavyweights that push around other assets…. Get the Currencies correct and many things fall in place! Sunday night I ran a post entitled “Euro/Yen signaling higher equity prices.” The chart below is a update to the action of the last couple of days.
On a short-basis, this is a very critical pivot point for the majority of asset classes…
Euro/Yen holds support here and starts pushing higher from this falling wedge, stocks(broad indexs) and commodities (copper and metals) move higher!
What the Euro/Yen does here will have much to say if support holds or fails, highlighted in this “groundhog” post.
Hey, cool blog about Currency price hikes, it is a routine 🙂
K-Rob,
I have traced the euro/yen as a leading equity indicator, then I apply pattern analysis to the euro/yen. When the pattern on the euro/yen is bullish, it tends to be an early signal for stocks. I posted the opposite trade a few weeks ago, as the euro/yen was breaking support…next day the 500 index fell 3% the very next day.
Hey Chris, I posted a comment on the other blog entry titled “Euro/Yen signaling…” however I wanted to leave one here also in the event you did not see the other one.
Good call there chap on the “surprise to the upside” movement on equities. I would like to ask if you could enlightenment as to how you made this deducement that the EUR/JPY currency would influence the equity markets to move higher in price? Was it because the weak dollar compared to Euro and Yen helped US exports which would report a stronger quarter?
Where can I look at a euro/yen chart I no nothing about currencies I have to see if support and where is support I don’t know what number the line is pointing too.
Help!