U.S. stocks appear headed for a correction, and investors should blame the Japanese yen as one of the primary factors, according to MSN Money columnist Anthony Mirhaydari.

Mirhaydari said hedge funds have been taking positions against the yen to fund stock purchases, but that trade is unwinding just as U.S. stocks have hit threshold highs.

A wave of selling pressure on equities is ahead, according to Mirhaydari, head of his own money management service, Mirhaydari Capital Management.

Editor’s Note: Dow Predicted Will Hit 60,000 — Buy These 4 Stocks Now(Shocking)

"Many technical indicators are now flashing red — suggesting a correction is ahead," he wrote.

One prominent fear on Wall Street is that the Federal Reserve will begin to taper its $85 billion monthly bond-buying program as early as September. The Fed's ultra-loose monetary policy has been a key underpinning for financial markets for several years.

"Surely, this is playing a role. And it's disappointing to see Wall Street worry more about an ever-so-slight reduction in Fed stimulus than what is developing into the best global economic tailwinds since 2011."

But the bigger factor in a looming correction is evidenced by the rising Japanese yen, despite the best efforts of Japan's central bank to keep its value down so as to boost that nation's export economy.

"All I can tell you is that this is a big deal since 'yen carry trades' – or bets against the yen that funded stocks purchases and other investments – has been one of the primary drivers of stocks all year," Mirhaydari explained. "Now that it's reversing, hedge fund types are selling their investments, buying the yen and closing the trade."

The Japanese yen surged to a six-week high against the U.S. dollar earlier this week, RTT News reported, which in turn has helped push the Japanese stock market lower.

MarketWatch reported the carry trade strategy began to fall apart when Wall Street pros became concerned about the pace of the Fed's potential easing pullback.

Bernanke "exacerbated" these fears when he told Congress in May that the central bank could begin slowing its asset purchase in coming months, Nomura's Ankit Sahni and Jens Nordvig wrote in a note, MarketWatch said.

Editor’s Note: Dow Predicted Will Hit 60,000 — Buy These 4 Stocks Now(Shocking)