Summary
I thought this was worth mentioning prior to the FOMC and the BoJ. As a market participant, it is vital for me to understand central banks’ deeper thinking. With the Federal Reserve preparing to raise interest rates for the first time this year, should it happen today, we might possibly see the 10y T-note move down beyond 123.5 as yield would also fall. This would then result in Yen weakness. But should the Fed keep the same interest rates and Market participants interpret Yellen’s speech as somehow negative, we might see the 10y T-Note move up back to its range and possibly trade in that manner. On the other side of the world we are a day away from the BoJ’s Monetary Policy Meeting. It is unlikely that interest will be hiked any time soon as it is evident that a combination of negative interest rates and the purchases of government bonds is effective for yield curve control to control inflation. Even though it is not a smooth ride, I am yet to research what might be the reason why the bank purchase different amounts of government bonds every month and not a fixed amount like the ECB.

EurJpy Daily Chart

Price opened between MM2 and the Monthly pivot. Having come a few pips short of the monthly bull target, price is currently at support and might possibly be making a higher low should it fail to break this level. Stochastic is overbought and market action moving averages don't really show a strong momentum of bullishness.

EurJpy H4 Chart

Price opened at WM3 this week and fail to make a higher low at the immediate support at 122.2. Should price break through the 120.00 psych, I am expecting it to make a lower high at the role reversal.

EurJpy H1 Chart

Price is currently at support at DM2, a level where bulls are most likely to buy. I am expecting bear to prepare their short guns anywhere between the Daily Pivot and DM3. Use lower time frame for entry.Also keep in mind the 21 Moving Average

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