I like to track the AUDJPY and had not taken a look at it for a while. Why? It’s been in a VERY well defined parallel trend channel going back decades. I’ve never traded it, but use it w/ equities. Hugh?
It’s actually known as one of those cross pairs that are associated w/ “risk on” and “risk off.” In this case, AUDJPY is seen as “risk on” and it’s interesting to see how this is correlating pretty nicely w/ the equities.
The candles is the AUDJPY spot currency pair.
The red line is the NASDAQ composite
The black circles are just correlation nodes that corresponding to inflections in the market and the light blue rectangles are just showing the time component. Now, please note, one time it didn’t even register and this correlation pretty much failed. But, every other market move, the AUDJPY was inflecting.
So, top of the range and an ABCD target on the AUDJPY. Usually spells a relief/correction in this ongoing insanity higher.
