Courtesy of Chris Kimble.
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Sometimes currency price action can be very helpful, when it comes to whether one should own stocks or not.
The US$/Yen has been correlated with stocks fairly well over the past few years. As the US$/YEN was hitting highs over the past year, stocks followed right along with it.
Potential is in play, that the US$/YEN has created a “head & shoulders” topping pattern. If this read happens to be true and it breaks support and turns weak at (1), it would be sending a risk off message to the stock market.
What the US$/Yen does in the next couple of weeks at (1), should be VERY important for stocks going forward. Stock bulls want/need to see the US$/YEN to push higher.
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