When All Else Fails…

QQE didn’t work.  Jawboning didn’t work.  Not even NIRP worked.  When all else fails, the only course left to central planners is direct intervention.  Welcome to direct intervention.

Yesterday, USDJPY tagged the bottom of a channel dating back to Nov 2014  for the second time in two weeks.  Remember, on Jan 20 it actually dipped below the bottom, resulting in SPX briefly dropping below the neckline of a large H&S Pattern targeting 1530.2016-02-05 USDJPY v ES 60 0605As we’ve discussed many times, this channel can’t fail without the yen carry trade suffering a huge setback and stocks plummeting much lower.

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