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USD/JPY bouncing, but skepticism remains below 118.60 barrier

Discussion in 'Technical Analysis' started by FXStreet_Team, Jan 14, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    Earlier today, my colleague Fawad Razaqzada discussed the Nikkei 225 and whether Japan’s most widely-followed stock market index was forming a double bottom or merely seeing an oversold bounce. While the correlation is not perfect (no intermarket correlation is!) that bourse and many other equity indices are closely correlated with USD/JPY. Historically, the performance of USDJPY has provided a reliable proxy for global equity markets and risk assets as a whole. This correlation makes sense:

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