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?