The volatility in JPY crosses has been considerable since the start of the new year – likely sending many carry-trade-driven risk manager’s to the trading floors. USDJPY just broke back below 104.00 for the first time since 12/23, dragging the Nikkei 225 to its lowest level since the Taper. Notably, the Nikkei – having almost caught back up to the Dow on Boxing Day – is now at its cheapest in a month. The Nikkei is down 300 points from tofsay’s highs (tripe that of the Dow).
USDJPY at its lowest since 12/23 (i.e. JPY at its strongest)
For now, US equities are holding up post the EU close (as carry gets sold)…
Which has slammed the Japanese stocks back to their cheapest relative to the Dow in a month…(and eradicated all the post-Taper gains)…
Charts: Bloomberg
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via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/fiURpfH4NHU/story01.htm Tyler Durden