A Few Post-FOMC Notes

The Dollar is catching a strong bid, most notably, while Treasuries, the Yen, Aussie, and Euro are all getting hit.

Turning to Japan for a moment, it will be very interesting to see if the dominant uptrend since last November 2012 reasserts itself. The EWJ, ETF for Japan trading here, has bounced much more sharply than the Nikkei itself has off its recent sharp correction.

The ETF has rallied back up to a smoothing-out 50-day moving average, and I suspect shorts will give it one last try here for a rollover before a potential squeeze above $11.50 materializes. We figured a correction would come here last month, and a bounce would happen after the fast and furious selling.

Now comes the real test.

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