Markets eventually get it right

Today is very interesting day in a fundamental sense the singapore dollar which is manipulated with exchange rates rather than interest rates was moved today by the authorities in Singapore. They did this to counteract one of the big downsides to recovery, rising inflation, almost immediately the USD/SGD dropped by over 1% (as expected with news like this the SGD would strengthen), all the over risk pairs were bought heavily into the tokyo fix this morning like EU, EJ, AU, AJ, the normal risk leaders.

Now this is a very unusual situation cause in my opinion this simply should not happen, Risk should be  positive for JPY, this hasn't happened yet but I am expecting it might. I think the reason we have a risk on approach today is very simple, its earning season and when one of the leaders in earnings like Intel posted a much better result after the close of Wall street, then the market was only going to go up.

I said in the heading to this article that eventually markets get it right and I want to show you a very simplistic view on a chart now obviously we need more than this to trade it but there are some signs that a reversal in yen pairs may not be too far away.

Daily UJ chart notice the last few days, no upwards momentum, look at MACD, its now crossed, normally significant on daily chart

My next chart is GJ, it seems to me like its trying to put a top in, clearly rejecting the top at 145, MACD again hasn't crossed but its getting close.

I never want to pick the top or the bottom, I leave this to the professional money but I do like to align my research with the signals the market is giving, perhaps earnings season if better than expected might dampen any selling in the jpy crosses for now, time will tell.

As Always good luck folks