Investors said Sayonara to the crucial 102.00 level for USDJPY tonight and while S&P 500 futures are leaking lower (down 7 points from their earlier highs), the Nikkei 225 has collapsed over 430 points and is pressing one-week lows. This is the lowest the Nikkei 225 has been relative to the Dow in 8 months.
The S&P has retraced the post-European close rally and decoupling from JPY moment in today's day-session...
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But the Nikkei 225 is collapsing tick for tick as USDJPY loses 102 once again...
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As the Nikkei 225 is now at its lowest price relative to the Dow for eight months...
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The NKY/SPX relationship implies either notable JPY strength (to 97 against the USD), a significant rally in the Nikkei or a major drop in the S&P in order for the 16-month global macro tourist trade to revert to the mean...the last time the FX and equity markets were this decoupled was when the Nikkei collapsed (and mean-reverted) in May 2013.
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With the Nikkei at one-week lows, its now 700 points below the post-Yellen exuberance.
The broader TOPIX Index is down 4.25% from Tuesday's post-Yellen highs.
Could be a lot more pain to go if CFTC CoT data on JPY shorts is anything to go by...
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Charts: Bloomberg