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Strategy Video: Have S&P 500 and USDJPY Signaled the Turn?

By , Chief Currency Strategist
11 April 2014 00:51 GMT

Talking Points:

• A jump in volatility and the biggest equity slump in two-months has traders on alert for a risk reversal

• Looking for risk in other measures, though, the level of conviction seems to erode

• While the opportunity for a major S&P 500 and yen crosses reversal is at hand, confirmation is important

Do you think the Yen crosses will break and reverse into serious bull trends or bounce and hold a range? We have coded the DailyFX-Plus strategies for Breakout, Range and Momentum to adapt to these market shifts.

Hungry for volatility and momentum that can last for just a few days, traders will natural gravitate to assessments of a true trend reversal with today's sharp corrections. Yet, calling the turn on trends that are months and years strong demands a more robust level of confirmation than a temporary flash of volatility. In today's Strategy Video, we look over the potential and probability behind this tumble in equities and yen crosses evolving into a full-scale risk-aversion move.

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11 April 2014 00:51 GMT