This is just to show a bit more about the yen carry trade and its impact on the ASX 200 and S&P 500. I thought I would show the main carry trades with these charts below. This can be difficult to understand if you are not aware of this connection. I explained the importance of the carry trade here in a previous post.
This is the AUS 200 daily chart
Below is the US 500 daily chart
Below is the AUD/JPY daily chart
Below is the EUR/JPY daily chart
Below is the USD/JPY daily chart
Below is the GBP/JPY daily chart
Below is the charts charts from finviz.com that show the U.S. binds continue to get bid up. The $USD has turned back up since taper 2 was announced. The Europe EUR is has broken support. The Japanese JPY is testing resistance and could break out to the upside. The British GBP has turned down. All this together shows what is going in in the charts above imo.
Click on chart to enlarge
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