I was a bit chagrined when, after posting BoJ Underwhelms last Friday, a 47-pt meltup followed the initial ho-hum reaction. My point then was that the BoJ had:
1. managed to ramp USDJPY directly to overhead resistance; and,
2. it wouldn’t matter unless yen carry trade investors believed it would continue higher.
I’m chagrined no more. Not only did the pair reverse at that resistance (a major channel midline and the SMA 200), but the subsequent reversal plunged right through the biggest, most important line of support in the most important instrument that affects the “market” — the USDJPY’s 61.8% Fib at 120.11. It erased over 80% of USDJPY’s post-Kuroda gains, and 88.6% of SPX’s gains.
Sorry, this content is for members only.
Already a member? Login below…