TOMORROW COULD GET WILD FOR MARKETS

Two major events are landing at the same time

BOJ rate decision
A hike is already heavily expected but the real volatility may come from the BOJ’s guidance

If the BOJ signals faster or more aggressive tightening
USD/JPY could drop hard and the yen carry trade unwind risk could rise

Then comes triple witching

Around $6.2T in options are set to expire

If markets remain weak going into the expiry
forced positioning and hedging flows could amplify the moves

One day
Two catalysts
Potentially extreme volatility

Buckle up