The BoJ's Turn

The FOMC announcement came and went with less excitement than usual. Most market participants expected no change, and that’s essentially what we got. Aside from a 13-pt VIX-induced spike in SPX which fizzled into the close, there were no fireworks.

Tonight, the BoJ is likely to upstage the Fed. The yen carry trade, the principal driver of higher stock prices since 2011, officially ran out of juice over a year ago. Intraday rallies have been quite helpful on a regular basis. But, the USDJPY has been locked in the same falling channel since October 2015.With SPX at new all-time highs and CL no longer providing much algo support, will the BoJ finally take widely expected action to weaken the yen?