A “risk on” day meaning bullish AUDJPY, NZDJPY, CADJPY. Wednesday the DOW plummeted after the FOMC and the commodity/jpy pairs and the OIL price stayed pretty solid. Indicates to me those pairs want to go up.
Last week the commodity currencies and the JPY once again correlated strongly with the stocks and commodities as expected. Risk aversion (stocks and commodities down) gave way to sustained risk taking (stocks and commodities up) following verbal intervention on Wednesday morning London time from the Bank of Japan (BOJ) and verbal intervention on Wednesday US morning time from the Bank of Canada (BOC). See the chart below and the Jan 21, 2016 TRADEFINDER.