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Will USD/JPY drop push Dow Jones lower?

INDEX:DOWI   DOW Industrials
USD/JPY             spiked after Abe’s landslide victory on July 11 triggered speculations the government would announce a fiscal stimulus package to weaken Yen (support economy, combat deflation). Post Brexit drop in USD/JPY             also triggered speculation the Bank of Japan (BOJ) would cut rates further into negative territory/expand QE .

The ‘reflation’ trade as called by TradeSignaller analyst on our Finance show - https://www.youtube.com/watch?v=zzIuBr7-IrI pushed up US stocks to record highs.

Reflation trade – borrow in Yen and invest in US stocks – has been noted on numerous occasions in history. Moreover, the rise in US stocks since late 2012 has been fueled by Yen drop.

We can notice on the chart above – the correlation coefficient between Dow and USD/JPY             strengthened post July 11.

This makes us wonder if the drop in the USD/JPY             seen today could pull Dow Jones lower with itself. Also note that USD/JPY             could fall sharply if BOJ/Japanese government falls short of market expectations. In such a case, Dow Jones faces risk of a sell-off.
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