Update on the Nikkei: Aug 12, 2015

As we anticipated on July 8 [see: Update on Nikkei] the sharp drop in NKD panicked the BOJ.  The nifty megaphone pattern was spoiled by a “coincidental” sharp rally in USDJPY.

Before USDJPY had even reached its 100-day moving average, the BOJ sent it soaring.  It had rallied by over 4% as of this morning — enough to push the Nikkei 9.3% higher.

As it melts down again, we’re left to wonder if the next meltdown will be the charm?  Time to ladle a little QQE on top of the currency manipulation?

2015-08-12 NKD daily 1211am

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