On the 30-minute chart USD/JPY has dipped below the trend-line illustrated on the chart and sets up the possibility for more yen strength later in the session with negative consequences for equities.
The S&P 500 futures are drifting lower in European trading on Tuesday morning, and, referring to the 240-minute chart below, if the possible support from the base of the cloud around 1050 is sliced through decisively when trading begins in North America, I would be looking for a return to levels in the 1040 zone.
One currency pair which is not often cited is CHF/JPY i.e. where the Swiss franc is the base currency and it is quoted against the yen.
The daily chart below reveals an interesting breakdown from a large triangular formation and it is the drop below the ascending trend-line from the mid May lows which reinforces the view that further yen appreciation lies ahead.
Clive Corcoran is the publisher of TradeWithForm.com, which provides daily analysis and commentary on the US stock market.
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