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Is AUDJPY signalling something for Asian stock indices?

AUDJPY-EEM-HSI-SIMSCI widening

I discussed previously AUDJPY's high level of positive correlation with EEM, Hang Seng, Singapore index futures.

Jan 2015 - Jan 2016 chart overlay of EEM, HSI, SiMSCI, China A50 and AUDJPY

EEM, HSI, SiMSCI, China A50 and AUDJPY overlay posted on 27 January 2016 | Source: Investing.com

This correlation made its presence felt most strongly during the early January crash. At a glance at the chart below, that correlation remains intact. However there is a widening gap in terms of YTD performance. If their correlation remains valid, then something is wrong with this picture with their widening divergence. AUDJPY is either too bearish as it moves towards 52-week low or EEM, HSI and SIMSCI has some catching up to do.

AUDJPY, EEM, HSI, China A50, SiMSCI overlay on daily timeframe, YTD

AUDJPY, EEM, HSI, China A50, SiMSCI overlay on daily timeframe, YTD

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