USDJPY led the way yesterday as expected.  The channel dating back to Nov 7 looks to be breaking down — or at least tilting.

The task now for equities will be to maintain downward momentum in the face of all the FOMC cheerleaders out on the talk circuit and auto sales data puffery.

So far, the emini’s ramp job looks like a back-test of the broken red channel, but we’ll have to wait and see.

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As we discussed Tuesday, the USDJPY is the key indicator to watch. And, it’s off to a good start…

UPDATE:  10:05 AM

Look for the slide to continue, targeting the gap close at 104.33?  But, that’s just the purple .618.  The purple .786 or .886 take the pair all the way to the channel bottom and make for a more interesting first day at a decline of 1.31-1.46.

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