This chart tells us the Nikkei will outperform the USDJPY pair. I was thinking this week how amazingly resilient the Nikkei has been even with the Yen rising so much this year. But the correlation is mostly applicable on a very long term basis (monthly).
Correaltion shown in chart below. Since 2005 the correlation has been very positive.
Correaltion shown in chart below. Since 2005 the correlation has been very positive.
Comment:
Sometimes the spread makes more sense than anything else. This continues to be the preferred trade when looking at the Nikkei and USDJPY from a risk and probability perspective.
Trade closed: target reached