BOJ Monetary Policy statement will be out tomorrow.
Though I cannot predict if they will determine the additional QE or now, it is not a bad idea to add one more Long position for Yen carry trades, and hope we can move the stop to Even before BOJ announcement.
As I wrote yesterday, it is not a crazy place to buy this pair, based on Daily chart.
I suggested yesterday, to wait to see the break of MPP and/or WPP to confirm the Reversal pattern, before buying this.
However, I really want to try making one more Long position today!
We can wait until M15 Stochastic turns into up cycle, and make sure the price doesn’t form lower low. If that’s the case, we can buy from Higher Low (or Double bottom), hopefully from DPP, with the tight stop.
Just like NZDJPY, the current area is an interesting stop to buy AUDJPY, at Role-Reversal Support. (I just don’t like Stochastic…)
I like Hourly Stochastic though. Based on Stochastic, I think it is likely to make Higher High when the Stochastic up cycle begins.
Thus, let’s wait to see Stochastic comes up to normal trading zone which is above 25%, then make sure the price is NOT making Lower Low.
Yes, that is to say… Make sure the price makes Higher High (or Double Bottom), and buy this pair.
Just note that these 2 setups are a little bit too aggressive. So you have to be aware the risk.
(For NZDJPY, I would like to wait for MPP, WPP break. For AUDJPY, I don’t like H4 Stochastic)
But just wanted to try to make one more Long trade before BOJ announcement tomorrow.
Hope this setup helps you build your own.
YJ Baik – Forex.Today