Today is FOMC day.
I am not going to make any new trades before FOMC.
But here is the possible trade plan after FOMC for USDJPY.
Weekly Ichimoku shows the current price has been supported by the cloud. (The top of the cloud is 121.50)
Likewise, the price is above the cloud on Daily Ichimoku. (The top of the cloud is 121.35)
Thus even if the initial reaction of FOMC decision announcement for this pair is down, I will believe the price will bounce up.
Perhaps that’s because my bias is Bull with this pair.
Now, on H4 chart below, you can see the tops of both Clouds are within the immediate support area (121.30 – 121.50).
Thus if the initial reaction is down, then I would consider buying this pair around 121.40.
If, however, the down speed is fast, then as a next buy zone, I would consider buying at the next support zone of 120.40.
If, on the other hand, the initial reaction is up, then I will simply try to buy the dip after the pullback. As usual, take a Fib, and try to buy this pair.
Hope this helps your own analysis.
YJ Baik – Forex.Today @ Tokyo
PS: I cannot join the daily session today. Hopefully I will join FOMC session.