Bank of Japan is holding the Monetary Policy Meeting today and tomorrow.
(There are 2 meetings scheduled in Oct. 1st one is Oct 6-7, and 2nd one is Oct 30th)
The rumor says BOJ would simply confirm to continue with the current QE, but no additional QE necessary.
But we never know. So simply remember BOJ is having the Monetary Policy Meeting now.
One possibility is that, when BOJ announces no change in their policy, meaning no additional QE, temporarily YEN may become stronger for a while.
Other than that, USDJPY may continue to be within the range.
You can argue the price broke the inner Range top (See below) Personally I am not 100% convinced it is a clear break out.
But if you think it is a clear breakout, then you can buy after the pullback.
Let me check Daily Ichimoku chart. This is the reason why I cannot fully become Bull with this pair. The candles are still below the cloud. If the candle go above the cloud (120.70), then I will become a bull.
So for those of you not convinced yet, you could trade “Range Bound Play” still. That is, to wait for the break down, and sell the rally, say from DPP.
Well, another strategy might be … don’t trade USDJPY until we see the clear trend.
YJ Baik – Forex.Today @ Tokyo