USDJPY is front and center today, currently trading below the SMA200 and hemmed in by the daily cloud. I wouldn’t be at all surprised to see it test a lower Fib level — the .786 or .886.  Stocks should respond in kind…if traders aren’t too mesmerized by the GoPro IPO.

CNBC’s marketing contract must specify that they say the word “GoPro” at least 10,000 times per hour.  It might be a good product/investment, but the coverage is like one of those late night infomercials.

UPDATE:  12:10PM

USDJPY is back to the SMA200 under control of the algos, with ES climbing along the 5 and 10 min SMA min as yesterday. NKD is back to the .786 of its pre-opening highs in a carbon copy of yesterday.

Note that, yesterday, NKD turned at the tend line shown (point “a”) while today it was the SMA10 (“b”).  In both cases, ES and USDJPY turned on a dime in anticipation of NKD’s reversal at its moving average.

In an unrigged market, USDJPY wouldn’t sail right back through the SMA200 (ditto for SPX and its SMA10.)  We’ll see if the algos can maintain control.

Here’s a look at the 1-minute chart.  The correlation is easy to see.  Watching them live, side-by-side, it’s obvious that it’s causation rather than just correlation.