USDJPY finally tagged our 132.22 target overnight… …a target we set over six months ago [see: Update on Currencies Nov 17, 2021]:Ordinarily, this might be a good thing for stocks. Not this time, as it echos the dollar’s strength against the euro.

continued for members…

This is major resistance for the USDJPY, but don’t put it past the BoJ to keep banging this same drum – even with marginal results.USDJPY faces not only the .786, but the top of a flag pattern and the midline of the huge purple channel.They’e been trying to get the NKD back above resistance for months. At this point, they face not only the SMA200 but a channel midline and a TL from last September connecting all the tops. How much more currency destruction will they push through in order to try to keep the NKD from imploding?  I guess we’ll find out. But, inflation is clearly a problem in Japan too. Remember, they import all of their oil and most of their food. The euro zone isn’t far behind, with the EURUSD finally shaking loose from its backtest…

…meaning the DXY is finally getting that next leg higher going. ES is clinging to its SMA10 for dear life. VIX has the SMA10, 50, and 100 to break through before TSHTF.Oil is slightly higher this morning while gas is off about 2% – not enough to make a difference to stocks or bonds. I am going to be out of the office all day tomorrow. I’ll try to post very early in the morning if I get a chance. But, it appears that things are largely on track.

GLTA