While we are well aware of the relationship between the level of the JPY/USD and the Nikkei in yen terms (1st chart below), there is another less publicized relationship between Japanese stocks and the yen that suggests yen weakness isn’t all it’s cut out to...
A few weeks ago we wrote that the volatility of JPY/USD cross had absolutely collapsed and so we thought we’d give our readers an update to that post. Well, volatility in the JPY/USD cross has fallen even lower since then and is now pushing 40-year lows...
A lot has been written recently by us and others about the absolute collapse in volatility in financial markets. Whether stocks, bonds, FX or commodities, volatility is making multi-year lows, but the lack of volatility in the JPY/USD cross is among the most stunning of...
For the week ending March 14th, foreign investors in Japanese stocks were net sellers by the largest single-week amount since weekly records began in 2001. This is concerning not only because of what it implies for the Nikkei (2nd chart), but also because of what...
Even amid geopolitical turmoil S&P 500 futures (blue line) and the JPY/USD exchange rate (orange line) are still moving in virtual lock step. But from a longer term perspective we are starting to see some cracks in the correlation. We will be monitoring closely which...
