Inverse correlation between Bunds and USD/JPY

Bunds and USD/JPY             are inversely correlated since June 2015. This is precisely the time when market began questioning the efficacy of the BOJ policy and Yen began to rise.

Prior to June 2015, Bunds and USD/JPY             pair shared a direct relationship…given that stimulus in Kapan pushed bond prices higher across the globe.

10-yr Bund             prices could extend the recovery to 167.00 levels or so over the next week… given the Dollar-Yen pair has suffered repeated failure around September highs and the retreat to 103.60 today amid bearish crossover on the daily MACD suggests the bird is likely to extend losses further over the next week.

Given the inverse relationship… losses in Dollar-Yen means Bund             prices could move higher to 167.00 levels.