Could the Dow be ready to take off again?

Dollar Yen currencies
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The dollar is at a four-week high against the yen, while the Dow attempts to recover from the four-week low it set last week.

Will the recent divergence between the two help the Dow take off?

Year to date, the Dow and USDJPY have moved in tandem and by a similar magnitude, each gaining over 14 percent.

In the past month, however, the two currencies have managed to remain in positive territory, with the Dow losing over 4 percent in the same period.

Further, the ratio of the Dow and USDJPY is at June levels.

The ratio, which is down more than 6 percent since the Dow hit an all-time high in August, is generally used to measure relative strength between the two asset classes.

In fact, each of the last five times this year that the ratio has pulled below 150, the Dow has gained an average of more than 1.5 percent within two weeks.

—By CNBC's Pradip Sigdyal