As we already noted earlier today in our overnight recap “Alarms Going Off As 102 Dollar-Yen Support Breached“, all eyes are glued on the USDJPY 102, which moments ago decisively breached the 102 support level. We said that “if support below the USDJPY fail solidly, then watch out below.” Sure enough, here is Ben Hunt from Epsilon Theory with some follow up observations on this topic.
There was a clear short-term narrative developed in the financial media last week creating a focal point at 102 in the Yen/USD exchange rate. The short-Yen trade is perhaps the most crowded trade in the world right now, so a strengthening of the Yen to break below the focal point is a big deal for market game-playing behavior. The Yen broke below 102 today, which will put plenty of game-playing pressure on levered short-Yen positions in particular, and the entire equity market in general. Be careful out there.
Untaper time yet?
via Zero Hedge http://ift.tt/1bVvY3R Tyler Durden