The Nikkei 225 is a great indicator of what’s happening with the yen carry trade.  It’s a “first derivative” of sorts that reflects the degree of yen bashing that’s going on, and also whether or not the BoJ is stepping in to prevent further losses.

So, when it approaches a potential bottom, like it is today, I always pay attention.

continued for members…Note that it’s approaching a small scale 1.618 at the same time as its daily SMA200.  And, if we adjust the red channel only slightly, there’s channel support as well.  A reversal anywhere between the white .618 at 19464 and the white 1.618 at 19527 would fit quite nicely.Here’s the daily chart, clearly showing the moving average, Fib, channel and trend line support at current levels.  No guarantee that it’ll hold, of course, but it’s a pretty convincing sign.