Futures are off modestly, a win versus what would be happening if not for the VIX smackdown and USDJPY breakout employed to keep the plates spinning just a little bit longer, until Friday’s CPI report.

This is really an unconscionable move, even for the BoJ, which has bet its citizens’ futures on keeping the Ponzi scheme which is the Nikkei on the rise [see: the yen carry trade explained.]

This is a self-inflicted wound, and the impact on oil prices alone is staggering.Food prices aren’t far behind.

continued for members…

First, a quick look at the triangle setting up in ES… …thanks to the ubiquitous VIX smackdown. Now, back to the USDJPY. This is exactly what our charts called for, but I’m still dismayed that the BoJ would go this far this fast. It’s all about engineering NKD’s breakout above its red TL, white channel midline and SMA200.

Those Japanese who own a lot of stocks don’t object to paying twice as much for food and gas as long as their net worth is rising. Those who don’t are clearly paying the price.  Pretty much like the US, though the genpop in the US isn’t as compliant and there are still some media who are willing to call BS on the official narrative.

Speaking of the US, remember that in currencies it takes two to tango. While the BoJ could be the one hammering the yen in order to prop up the Nikkei, the Fed could also be playing the same game in order to prop up the S&P 500 in the absence of QE.

Remember, the USJDPY recently completed two huge IH&S Patterns that suggest much higher levels. With the white .786 in the rear view, the .886 at 139.43 and the former high at 147.65 are the only impediments to 167.25.