Aren't they something like 92% correlated? EDIT: That is, the USDJPY and S&P 500... I have that at .56 on the year (daily).
Near term, sure, but the relationship has not always been so tight. It is more closely correlated during stock market downturns than in upturns, and I expect that the inflationary impact of this rate cut will make the carry trade much less attractive. I am not exactly Mr. Forex here, so take my analysis cum grano salis.
Canadian dollar hits parity for the first time since 1977. We'll now see a Canadian dollar that will likely be stronger than the US dollar.