by John Galt
January 5, 2012 05:30 ET
The implosion of the Euro is well under way and this will trigger a massive sell-off in the U.S. equity markets if the central banksters don’t break out their inner piggy and bail it out immediately.
The technical condition is now shattered in the EUR/JPY swap with new decade plus lows being made daily and this morning being no exception:
(from ForexPros.com – live 5 minute chart updates automatically)
EUR/JPY
96 is now in play in that swap with 90 acting as long term support which appears to be in jeopardy this morning. Meanwhile the USD/EUR swap is breaking down also and 1.26 is the next target before heading back to 1.20:
EUR/USD
Once the adults in the bond and Forex markets get the message through the thick skulls of the equity piggies, the markets will move rapidly and with little warning to the downside. Today will probably act as a drift to the downside type of day but in the end, it would appear that there is no grand plan to save the Euro currency at this time nor the EMU as a whole, thus watch for higher volatility and larger percentage moves up and down as the rumors and reality clash on a dailiy basis.
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