As Rick Santelli just noted, the JPY carry trade is the only thing that matters. It is the only fun-durr-mental factor that matters (implicitly or explicitly encouraged by the varying velocities of BoJ and Fed balance sheet flows). To that end, this morning has seen the crucial Abenomics make-it-or-break-it 102 level for USDJPY tested once again... and then instantly ramped (by Nomura we suspect by all market chatter accounts). We will wait for Europe's close to see reality.
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It is all about generating momentum ignition in S&P futures - as we have discussed numerous times. Yesterday we saw a similar disconnect which collapsed back to JPY reality into the close - will today be the same...
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Charts: Bloomberg