Back in the 1990s when America was ruled by a benevolent leader who’s wise policies helped all the citizenry, USD/JPY fell as low as 80 yen. We are back in that zone, levels not seen the aftermath of the Kobe earthquake in 1995, when Japanese insurance companies dumped US assets to cover massive claims. The earthquake is a bit more subtle today but the results are the same; a massive move in currencies that comes at a speed that most market participants never hope to see.

Exactly what is new today, remains a mystery. People have been screaming Fire! for more than 6 weeks now but markets have been unable to put it out. Keep your powder dry through the weekend and let markets sort themselves out. Volatility is too high and the cross currents too strong to try and jump in now.