BoJ Stimulates More Than Expected, USDJPY Falls Anyway

If you ever needed a reason why not to trade on news, the chart below provides a pretty good example of why its completely hit or miss.  Coming into the Bank of Japan’s Monetary Policy Meeting, the USDJPY had been trading steadily higher as forex traders were expecting the BoJ to provide 10 trillion yen of stimulus.  At the end, they came through for traders and even upped the ante to 11 trillion.  But, as you can see from this chart, other than that tiny uptick as the news was announced, the USDJPY tanked on the news.

 

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Fed's Dudley Speaks - USDJPY Keeps Creeping Higher

With that backdrop, the one forex pair that looks interesting is the USDJPY.  While it’s hard to become a full fledged USDJPY bull knowing that it has made repeated moves back below 78.00, its current trading is hard to ignore.  The USDJPY hit an October high this morning of 78.92 as it has been reacting to positive US news.  As mentioned in this website quite a few times, much of the ebb and flow of the USDJPY is based on the forecasts of Japanese exporters on the rest of the world.

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House Clearing Day: Exiting EURCHF, EURAUD & EURGBP

Haven’t posted in a long while.  Basically I have been staying on the sidelines with my Euro longs; EURAUD, EURCHF and EURGBP as for the most part they have been doing well.  I have decided today to close them all and go flat.  The forex markets currently look very sideways with no real catalysts lately.  The only story was the better than expected non farm payrolls figures earlier this month which the Fed has been trying to ignore anyway.  Also, the story in Europe has gone to its next phase of stalling along. As such, taking the opportunity to close all positions.

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Forex Trading Analysis - Bank of Japan Joins The Risk Party!!

Earlier this morning the big story was that the Bank of Japan has joined the party as it announced at its Monetary Policy Meeting that it would increase its asset buying and loan program, by 10 trillion yen ($127billion) to 80 trillion yen. The move ends months of inaction from the BoJ which had been aggressive with applying economic stimulus earlier in the year before slowing down. The move is partially seen as a defensive play by the BoJ as forex traders expected that a potential run into the yen was possible after the US Fed activated its QE3 plans.

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Post FOMC Rant: Risk Rotation & EURCHF Update

This is a video that I put together for a client of mine where I post a series of Weekly Trading Previews

I get a little excited, but then again, a lot's gone on in the past two days for traders. You'll see my thoughts on the USDJPY, EURCHF, and EURGBP