USDJPY 15 min

USD/JPY has completely erased the FOMC flop.

The reversal is part of a broader unwind of the FOMC moves. US yields continue to move higher, stocks are falling and the dollar has recouped losses.

It's early but the message is that the market doubts the Fed has found an upper limit on the terminal path of rate hikes. Or that by tightening less now, they will be forced to tighten more later.

The worry is that the Fed loses control of the narrative as the market fights Powell -- and wins.

Mechanically, USD/JPY continues to show strength even on days when there's material risk aversion. That's a powerful signal even after a virtually non-stop 1500 pip rally.