We talk a lot about the markets being “propped up.” It’s not just an expression, as the following charts for the Nikkei, USDJPY, DX and 10-yr note will affirm. In fact, even a casual glance at the charts below should destroy any notion that these are “markets” any more at all.
Note the dashed, yellow neckline on NKD — even following the death cross back on Mar 28.
USDJPY, likewise, has been propped up above the Feb 4 lows, with seven stick-saves off the dashed yellow neckline. The SMA200 finally arrived today to lend additional support.
The dollar’s latest death cross came way back in September. But, it has been propped up at roughly 80 at least a dozen times since late 2011.
The 10-yr’s rising red channel midline gave up the ghost on Apr 9 following its death cross on Apr 3. Since Thursday, it has been propped up above the TL connecting the July and October 2013 lows.
Each of these critical components of the yen carry trade are due for another bounce, providing a boost to stocks — which is, after all, the object of the whole exercise.