Again USDJPY sharp spike down right around when US markets open.
Must be the BOJ.
Conducting their operations right around US market open on consecutive days to minimize the impact of their buying operation since it is the highest liquidity moment.
/s
@Tjernlund Welcome to the $GME phenomenon. The stock that doesn’t care about news, sentiment, or fundamentals.
It was pushed into the shadow realm of the global derivatives web a few years ago and has traded in the Dorito of doom ever since.
The past several days is a great example of how the Yen carry trade works
When the USDJPY diverges against the dollar (DXY) it implies carry trade activity or the Yen moving independently from other currencies.
The theory has been that the carry trade is used to leverage up the long positions (mega caps) and sell and crush down the short positions ($GME and small caps)
The last few days have seen a sharp dollar and yen divergence and we are seeing the theory play out. Mega caps (QQQ) have been outperforming. This is shown as QQQ/RSP (S&P equal weight).
The carry trade has spiked up in a pretty big way over the past couple days and could be in order to post strong quarterly earnings (today at close).
We can also check it against the overnight reverse repo numbers which will print this afternoon. I expect to see a massive spike there too.