The Nikkei 225 is at its 'cheapest' relative to the Dow Industrials in the last two months as the behcmark Japanese stock index has now lost all of its gains post the US Taper decision in mid-December. With USDJPY breaking back below 103 and the correlation between it and stocks as high as it has ever been, if BAML is right with its sub-100 target for the FX pair, then the Nikkei could be looking at 14,500 (or an 11% tumble from the highs).

Japanese stocks are back below pre-Taper levels... (leaving the NKY the cheapest to the Dow in 2 months)

as the correlation between Japanese stocks and the Yen remains as high as ever...

Charts Source: Bloomberg