For ‘years’ the US stock market has traded on ‘fun-durr-mentals’ – tracking USDJPY tick for tick day in day out as algos tickle leveraged currency trades to ignote momentum in US equities and guarantee ‘proof’ in the recovery. The correlation, however, between USDJPY and stocks (US and Japanese) has begun to deteriorate rapidly since Kuroda unleased Godzilla QQE… and today it is very clear…

First Japanese algos broke…

And now US…

Maybe the divergence between stocks and VIX & HY Credit protection buyers in the last week…

did mean something after all as traders await some possible inconvenient truths in the fed minutes.