Even if SPX500 and GER30 go to new highs doesn't change my risk off choice. I don't invest anything but holding my money until weighted JPY reaches its purchase power value which means I'm holding a lot of JPY currency for safe haven until some HUGE risks happen. They will happen, soon...
Market is a mountains.
Even if DXY huge rising doesn't mean UJ is an up trending. As we know, we have a pair which USD is dividend by JPY. Infact, there are four directions in this pair and all that matters is the speed of the JPY's changing.
If you guys think about it then you will realize how deep EUR/JPY and NZD/JPY will drop.
Think it, again.
1, If DXY goes to new highs with USD rising rates, then we could reach target 0.5= NZD/USD.
2, If weighted JPY recovers its purchase power, then we could get target 96= USD/JPY.
3, ( NZD/USD) * ( USD/JPY) = NZD/JPY target 48.
4, Do your maths where we could get target EUR/JPY.
I can't update weighted JPY because it's confidential now.
NZDJPY is a risk/safe pair which is leading the global indexes. From monthly chart this pair is very early sign of the stocks markets crashing. The Kiwi is collapsing from GDT auction price and New Zealand GDP dropping, let's wait and see the YEN's weakness will save it or not. This time, BOJ could do nothing under Trump's shadow.
The food and the oil inflations correlated and DXY correlated too.
NZDJPY is an leading index of risk on, the Kiwi's weakening doesn't mean the weighted JPY can't help NZDJPY.