The futures are up over 30 points at present. Why? The headlines will point to China’s massive intervention, or this morning’s economic news, or maybe even speculation over the Fed’s upcoming action/inaction.
The reality is that the BoJ decided that things were getting out of hand, and they decided to bring USDJPY back to the magic salvation of the .618 Fib at 120.11.
Who in their right mind could have looked at Friday’s falling red channel and felt bullish about USDJPY’s prospects? As we wrote on Friday:
Stay short over the weekend and risk a big pop higher over the 3-day weekend. Go long and risk a 55-pt gap down.
When equities, bonds and oil are all taking their cues from the whims of the BoJ and their notion of when “enough is enough,” well… that isn’t really a market anymore, is it?
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