All things considered, Fed Taper included, begs a fundamental question to any long term viewpoint. How can the Yen weaken that much, say to 106.00, against the Dollar if it depends on a synchronous rise in the Nikkei, and by default global stock markets? Esp . if any 'Non-Taper' action will inevitably continue to weaken the dollar. Taper will weaken stock markets. And on these simple points much is trapped. Little surprise therefore the USDJPY is a little cornered.
I understand the correlation flipped from negative to positive post 2008. Why? I've not read any good explanation.
A proposal: the markets being a complex self-regulating system reversed the correlation as the mechanism to hold in check, and possibly eventually correct, the distortion created by the intervention of central banks.
I think it likely this pair will continue into the corner. Or at least there is no significant northward movement.
(The fork, the fan & the Fib happen to be what I am currently using to analyse the price movements/resistance etc. I calculated by 'golden ratio' there should be a 'phase shift' approx. 29th this week). (PS. Just noticed that coincides with US GDP :)