WHEN THE FREIGHT TRAIN IS BIGGER THAN THE CENTRAL BANK

 

“Drowning is a sea of debt and “funny money”, where there is no escape!”

What’s going on in USDJPY is concisely and brilliantly elucidated in a short article

posted today over on ZH … couldn’t have been better written if I had done it myself

… the link directly below.

https://www.zerohedge.com/markets/move-big-deal-yen-tumbles-after-boj-

intervenes-cap-jgb-yields-amid-global-selloff

Key resistance areas are 125 & 135 for USDJPY, and if 135 gives way, you have to

go back to the pre 2000 internet, electronic trading era, when “pits” ruled the

world … talk about a currency meltdown, this isn’t some third world shithole here

… no, this is the highly industrialized shithole of Japan, the home of QE, funny

money, and the insane MMT [Modern Monetary Theory] of “Peter Pan” Kuroda

… shit is getting very real here quickly!

We started the day off in the Asian session where yields on the 10 YR. Treasury

skyrocketed … Kuroda showed up and put a ceiling on 10 YR JGB’S AT 0.25%,

THUS CHOOSING YIELD CURVE CONTROL OVER THE YEN FX RATE … and all

Hell proceeded to break forth to the upside culminating in a 300+ PIP rally to over

125, in the last hour of the Asian session … more than a mini melt up, this was a

true blowout … and since then U.S. yields have fully backtracked back down to

where the day started … this should cause some heartburn for any newly

positioned longs above 124, but panic knows no common sense! … so much for

the “slow Monday theory”! … here at mid morning in New York, about an hour

into the criminal NYSE money laundering operation, commonly known as “daily

trading of Stonks”, yields are trying to get below Friday’s closing level … in

theory this should see YEN buying [USDJPY lower], but in this FOMO panic

atmosphere it’s not having much of an affect [for now] … yes, the overriding trend

for yields is higher, but today’s reversal kinda pulls the rug out from underneath

USDJPY longs to see more gains … I mean c’mon, we already got a massive blow

off 300+ PIP range today … who’s looking for an extension of the range on the

upside now? … add to this the ”classic” Asian session types [Chuckleheads &

Mrs. Watanabe & Gal Pals] who ALWAYS buy the high AND/OR sell the low

… “how ya feelin’ now?”

I’m not exactly thrilled with the technical picture of USDJPY either … up 14 of the

last 16 trading days, over 1,000 PIPS! … today’s blow off top at the end of the

Asian session, the cherry on top of the cupcake … more than likely we’re due for

some tests of the highs into the 124’s that fail, and more consolidation chop for a

very rough trade over the next few weeks into Easter Holiday [April 17 this year

… yes, very late!] … IMHO, we got more downside long liquidations to come

… nothing serious just some shakeouts … if we just go ramping back up through

125 with no problems, it’s gonna be an ugly end when we get there … very ugly.

“Asia flies, the rest of the world dies!” … none more so than today … oil, BTC, and

YEN going bat shit crazy [BSC], before dying into Europe and then the U.S.

session … what the Hell is left? … the day over before it began, but did get one

algo buy signal in USDJPY … TURNKEY PAMM UP SLIGHTLY … meanwhile, BTC

can’t do shit outside the Asian session … go figure … the world is full of surprises

ain’t it? … can we get a decent trading day, or does everything have to be FUBAR

24/5? … I’m beginning to wonder … onto tomorrow.

… outta here … “The future’s so bright I need sunglasses”!! 😎😎

… Onward & Upward!!

-vegas