FOMC event is now over. Nikkei is down (-1.5%), Shanghai is flat. (as of 1AM EST)
After FOMC announcement, USDJPY dropped 120 pips. However during Asian hours, the price popped up 60 pips, and now bottomed up at 119.70 level. Yes, the market is not stable and directionless.
I would like to stay away from this pair, until I see the break either way.
If the price breaks up 120.25, then I would like to build the Long setup. In the same way, if the price breaks down 190.75, then I have to assume the price will further go down … DEEP. It could go down as low as 118.85 – Sep8th low.
Again, until we confirm the direction, it may be better to just observe the market.
YJ Baik – Forex.Today @ Tokyo