Watching the Correlation

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Those of you good people who read ZH are well-acquainted with the eerie correlation between the EUR/JPY and the S&P 500 (of all things). The “carry trade” is so screamingly obvious, it’s nauseating; it’s almost like they don’t even need to bother having separate markets:



One thing that merits noting is that, while Japan has been busy making the Yen as valuable as secondhand toilet paper, the FX pair is approaching what I consider to be an important resistance level last seen back in 2009 (which seems like, oh, about three million years ago). Of course, with Abe so dedicated to ruining then Yen, it might blow right past this.