Do Markets Need to Breathe?

The Japanese stock market was down over 10% at one point, but has pulled back a little since then. So shorts are playing out well, but make sure you can stomach strong retracements. Take some off the table, that would help.

Nikkei around 2-yr lows after HUGE plunge

Currency Moves Relatively Mild

Relative to the stock markets, of course. EUR was rebuffed early on  a test of 1.40 to test support at 1.39 (yes, I shall stick to 2 decimal places for now; remember these incredibly important levels mentioned in the last post?). Longs out on another failure at 1.40, so just sit back and watch how it plays out.

Japan pumped even more liquidity into the market, and word is that JPY repatriation is increasing - so don't forget all the other JPY crosses; they hold more than dollars, you know. USDJPY still sits pretty refusing to move much, threatening to break lower but held up by all the money the BOJ is flooding the market with. Oops, no pun intended, again.

The day is still young, and we shall see how things turn out. No meltdowns I hope (financial and nuclear), we wish everyone good health.

Peace