The forex markets have stabilized from Turkish turmoil. Swiss Franc is trading as the weakest one in Asian session so far, followed by Yen, as risk aversion receded. New Zealand Dollar, Canadian Dollar and Australian Dollar are the relatively stronger one. Rally in Yen and Swiss Franc could has passed the near term climax. But the lack of strength in recovery in EUR/USD, GBP/USD and AUD/USD suggests that the greenback might be taking over.
Nikkei clearly benefits from the pull back in Yen as it’s trading up more than 400pts, or 1.85% at the time of writing. Monday’s gap is nearly closed. But stocks stay generally weak elsewhere. Hong Kong HSI is down -0.89%, China Shanghai SSE is down -0.50% and Singapore Strait Times is down -0.17%. That followed -050% decline in DOW overnight. S&P 500 lost -0.40% while NASDAQ also dropped -0.25%.
It’s looking increasing likely that SPX is ready for a near term reversal. Momentum is clearly diminishing just ahead of 2872.87 high, as seen in bearish divergence condition in daily MACD. At this point, we’re not seeing any momentum for an upside breakout yet. Break of 2795.14 will instead indicate short term topping. When that happens, it could be the time for another round of selloff in Yen crosses. 
