Hey Gang,
There is a credit unwind that is putting downward pressure on the financial markets. It is referred to as the Yen-carry trade. If you do a search for it, you can find out the details of what is going on with it. My point here is to look at the major support that EUR/JPY currency pair is currently hitting. If the pair breaks support, it will lead to continued selling in global equity markets. If the pair finds support here, there will be a reprive from Yen redemptions and more money will flow back into global equities. You can trade the yen or the euro in the stock market by using the FXE and FXY ticker symbols.
Happy Trades,
Jeff
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