Fortune-teller

As a continuation of my previous study on currencies and its relation with stock markets I wanted to show some findings on EURJPY. As I mentioned about EUR, we can use some currencies correlation to confirm moves in stocks. Moreover EURJPY can sometimes spot equities moves in advance,under the form of divergences, so we can use it as an early indicator. In the chart we can see a comparison between EURJPY and SPX. Have a look at the red segments which are signaling the SPX "lagging" price action. Those are the moments we need to spot to avoid fading EURJPY with our trades on equities; and ideally following its footsteps for a profitable trade.