The Japanese yen is the strongest currency following the Bernanke speech Wednesday while commodity currencies are the weakest. The reason for the strong JPY is higher US bonds/lower yields. On the overlay chart we can see that best market to sell is the AUD/JPY while the best pairs to buy in risk-on environment is EUR/USD or GBP/USD and even some EUR and GBP crosses.

Market Correlations

Based on market correlations below -- and the S&P futures count -- we may see more USD selling in the near-term. S&P is showing incomplete bullish impulse with current pause in wave four from where prices may rally up in five toward 1675 today.