Wednesday, June 22, 2016

USDJPY ahead of British Referendum

Just hours before the British referendum we will like to show the implications of Brexit or Bremain on USDJPY

Bremain: A relief move towards around 113 is almost guaranteed

Brexit: A plunge towards 90-95 is definitely in the cards

Note that usually there is a positive correlation between USDJPY and US stocks.Since early 2016 this correlation was broken.We believe that during the current move the correlation will be reestablished which means that USDJPY and SPY will move in the same direction.
Currently there is some positive RSI divergence which favors Bremain.
In or out? Pick your poison...