We have been watching the Nikkei closely, as it is approaching a long term uptrend line dating back from 2012:


As many of you know, the JPY has been extremely strong all week. Many traders (such as myself) have been waiting for a pullback to get long some JPY (i.e. short EUR/JPY, AUD/JPY etc.):


If you take a look closer to the Nikkei, and compare to the 6J (JPY contract) you can see the very strong correlation:


If the Nikkei sustains a break down, the JPY may not pullback any time in the near future.


Blake Morrow

Chief Currency Strategist, Wizetrade


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