Uncle Ben plan for quantitative easing monetary policy was warmly welcome b y most Asian Bourses which saw Asian stocks move for a five-week high early in the morning, as bank shares helped extend a recent rally, and on broader investor optimism that a stronger U.S. economy will help the continent's export-dependent economies.
The effect however has a negative connotation for the Nikkei. It open high but five minutes later Nikkei started sliding downward. As previous mentioned in my postings that Nikkei has a positive correlation with USDJPY early in the morning, USDJPY went to the top at 0:05GMT after a double bottom during late US session. The top was restricted by 127% fibo extension and 100 fibo expansion with a overbought position as indicated by COG upper curve of orange color(refer to the 5 MTF chart above). At 9.20 am (Tokyo time) the Nikkei has gone to the red territory and carried USDJPY down. My earlier analysis of bullish Nikkei is negated and that goes along with the bullish view of USDJPUY.
The main worry for Nikkei was a strong Yen is affecting major Japanese companies as their earnings depend on exports.
