New USD/JPY Big Trade Orders 11.04.2015 +60

BK Big Trade -- Close USD/JPY at 121.45 for +60. Its struggling below 121.50. We should have the chance to reload lower

Order to Buy 1 Lot USD/JPY at 120.85 TRIGGERED

New USD/JPY Big Trade Orders

Place Order to Buy 1 Lot USD/JPY at 120.85

Place Order to Buy 1 More at 118.90

Stop for ALL at 117.17

Today’s FOMC announcement breathed new life into the dollar and there is typically another 0.75%-1.5% continuation after major revelations in monetary policy. One of the best currencies to sell versus the dollar is the Japanese Yen. Hopefully tomorrow’s Q3 GDP report will lead to a correction in USD/JPY that could trigger our entry. Investors bought dollars aggressively after learning that the central bank is still actively thinking about raising interest rates in December. This specific December guidance sends a strong signal to the market that the Fed is looking past the recent slowdown to the prospect of stronger growth and higher inflation expectations. The next big focus for the market will be Friday’s Bank of Japan monetary policy announcement. According to recent surveys 40% of investors expect the BoJ to ease, which is consistent with economist expectations. Of the 37 economists surveyed by Bloomberg, 14 expect the central bank to increase the size of its asset purchase program and their expectations range from a 5 trillion to 20 trillion increases. Since the last monetary policy meeting on October 6, we learned that machine orders, industrial production, consumer confidence and retail sales plunged. Although oil prices jumped today, inflation remains low, indicating that it will be a long time before their 2% inflation target is reached. The risk of a contraction in Q3 GDP screams of the need for more easing but Japanese officials have been dismissing the need, signaling that they are in no rush to act. The Bank of Japan rate decision will be a tough call and the risk is to the upside for USD/JPY because we do not expect a big reaction to steady policy. Easing on the other hand would be very positive for USD/JPY. We can’t help but remember that a year ago, the BoJ sent USD/JPY soaring 500 pips in 3 days after they shocked the market with more QE.

Swing

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