Is AUDJPY signalling something for Asian stock indices?
I discussed previously AUDJPY’s high level of positive correlation with EEM, Hang Seng, Singapore index futures.
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.
Director, TerraSeeds Market Technician Pte Ltd. Trader, investor. @sohtionghum was picked ‘Top 70 Forex Twitter in 2015’. Operates multiple strategies.
“Dear reader, I do not have a financial license to give advice. I do not know you the reader. Your financial objective and risk tolerance may be different from mine. I am not responsible for any consequence of your action.