💹USD/JPY, Nikkei Correlation Holds Strongly: Cable FX Macro

The correlation between USDJPY and the Nikkei 225 remains strongly positive overall—when the dollar strengthens against the yen (USDJPY up, yen weaker), the Nikkei tends to rise too. This has been the case since around two thousand two, driven by export boosts for Japanese companies and carry trade flows.

In recent months, the relationship holds firm. From late 2025 data, the twenty-day rolling correlation was around 0.81, and the past-month figure sat at about 0.79—still high and stable. Shorter-term like ten-day can dip lower sometimes, but the broader trend shows them moving together closely.

Nikkei's been hitting records near fifty-seven thousand six hundred fifty lately, with USDJPY around 155, both benefiting from risk-on vibes and yen weakness post-election. Any sharp yen strengthening could pressure the index, but right now it's aligned.