Thursday, August 29, 2019

Correlation between USDJPY and S&P500

Just from observing a chart of the worth action, one will see that the USD/JPY and therefore the S&P five hundred area unit powerfully correlative. As you'll see from the 240-minute chart below, the two instruments usually move together:



Dollar Index

When stocks unload, USD/JPY tends to unload additionally. The reverse is additionally true: As stocks go bid, USD/JPY tends to travel bid additionally. the rationale is that the Yen is taken into account to be an especially safe quality. 

We have some necessary events occurring over following few days, which can add some volatility to the two instruments:

Today: July FOMC meeting minutes

Thursday: PMI producing knowledge

Friday: Fed Chairman Powell speaks at Jackson Hole

If the S&P five hundred eliminates the Trendline resistance at 2933, there's space to maneuver up to horizontal resistance close to 2965.

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