Watching Currencies

While most pundits seem to be blaming Trump’s suspicious firing of FBI Director Comey for yesterday’s market slippage, the more important factor was USDJPY’s reversal late in the session. It was USDJPY’s breakout that, along with VIX’s continued hammering, encouraged the latest all-time highs. So, the fact that it ran out of steam at an unusual spot caught some by surprise. It would have been surprising to me, too — except for the fact that the USD has run into formidable technical and fundamental resistance.