The Yen Plunge Accelerates, As US Markets Zoom Towards Decisively Lower Open

The big BoJ intervention continues to do wonders for the yen, which after its initial spike lower against the dollar, continues to fall.

Here’s that (USD/JPY).

But whereas a natural fall in the yen might be a “risk on” sign, that doesn’t apply when it’s a manufactured fall, and right now US futures are pointing to a clearly lower open, perhaps as much as 0.5%.

Bottom line: correlation breakdown.

chart

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