I’ve been beating the yen carry trade drum so long, I can’t remember when it didn’t matter. Today, as on Jan 20, USDJPY has dropped below the bottom of the red channel. And, stocks are not amused. S&P futures were off over 31 points overnight before attempting the latest bounce.
ES has dropped 100 points since USDJPY reversed at our upside target on Jan 29 following the BoJ’s ill-fated attempt to turn things around [see: BoJ Underwhelms.] Now, as USDJPY drops through the channel bottom again, the “market’s” fate rests on whether or not the central planners will elevate the USDJPY yet again.
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