We are feeling the effects of holiday liquidity expectations. While enthusiasts may consider the S&P 500’s rebound this past session a mark of conviction, it likely has more to do with the receding tide from the VIX. Meanwhile, there are extreme market measures like EURUSD’s range that are prone to volatility, but can they be tripped?

The breakdown from USDJPY – and most Yen crosses – following the Bank of Japan’s surprise tightening of its monetary policy was certainly dramatic. It may also prove a fundamental shift for the Japanese currency over time. However, that tide change doesn’t have to play out immediately through liquidity drain.

Crude oil has consolidated recent gains as volatility around it calms down after yesterday’s wild ride that saw the Japanese Yen blaze higher. Will further tightening impede WTI?

One of the FX market’s favorite measures of risk trends, the Yen-driven carry trade, suffered one of sharpest collapses in years. Yet, the Bank of Japan driven move didn’t feed all the way back up the speculative line. With the liquidity countdown continuing, is there still room for breaks from the S&P 500 and Dollar pairs?