This pair has been trading within a congested band for the longest time .. since the equity bottom in Mar09.- Finally looks like it has broken out on the downside.
- As per ING Research, probably no longer as good a Risk Appetite proxy as it was before given the changed correlation of JPY since US ZIRP.
- Thus, technically regarded as a pure standalone sell here without necessarily expecting equities to sell-off too ie don't be itching to short equities because of this chart.
- Other JPY crosses included here for comparison.
- Same story throughout as might be expected given over-riding USD/JPY common factor.
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