"Living at risk is jumping off the cliff and building your wings on the way down." -- Ray BradburyNEW YORK ( TheStreet) -- The behavior of the yen, as seen in the CurrencyShares Japanese Yen Trust ( FXY) in recent weeks is yet another signal that the global risk-on thesis is slowly losing its foundation. For much of the first part of this year, yen weakness was the shining example of the quantitative easing "free lunch" and the global risk-on trade. At its peak in mid-May, the Nikkei , as seen in the iShares MSCI Japan Index ( EWJ) and the WisdomTree Japan Hedged Equity Fund ( DXJ), was up over 50% on the year while the yen was down over 16% against the dollar. It was widely believed at the time the yen would continue to weaken throughout the year, further supporting global risk markets. Since May, though, a troubling divergence has emerged. Despite Japan's continuing efforts to weaken its currency, the yen has failed to hit new lows and the Nikkei has failed to reach new highs. In the weekly chart below you'll notice the higher lows in the yen and lower highs in the Nikkei.