Dollar/Yen could not break above the long-term downtrend line even after the FOMC! Downside risk increases!
At this morning's FOMC, the Fed raised the policy rate by 0.25%.
Unlike Japan, the United States is a country with high financial literacy, so there is no action that would confuse the market with surprises.
This rate hike was also communicated with the market and slowly priced in, leaving no particular confusion and passing smoothly.
As always, buy on rumors and sell on facts.
Buy on the rumor (expectation) of a rate hike, sell on the fact of the rate hike being implemented.
It moved as the proverb dictates.
The USD/JPY is still unable to break through the long-term downtrend line and is retreating.
Personally, I was prepared for a breakout with a 0.50% rate hike, but it passed safely with 0.25%.
Recently, there have been lots of positive factors, yet the USD/JPY does not seem to have risen much.
※ Positive economic indicators and expectations for the passage of the US tax reform bill
There are many risk factors in the market, but they are not being brought to the surface or even surfaced at all.
Good times do not last long, just as bad times do not last long.
From next year, when risk factors surface, there is a possibility that IMM yen short positions could swing to become yen longs all at once.
If you are looking at USD/JPY from a long perspective, please be very careful.
Blog here — I have added market trends and chart analysis.
To those who wish to win in FX trading ~ The Path to Becoming a Consistent Winner Trader ~
Unlike Japan, the United States is a country with high financial literacy, so there is no action that would confuse the market with surprises.
This rate hike was also communicated with the market and slowly priced in, leaving no particular confusion and passing smoothly.
As always, buy on rumors and sell on facts.
Buy on the rumor (expectation) of a rate hike, sell on the fact of the rate hike being implemented.
It moved as the proverb dictates.
The USD/JPY is still unable to break through the long-term downtrend line and is retreating.
Personally, I was prepared for a breakout with a 0.50% rate hike, but it passed safely with 0.25%.
Recently, there have been lots of positive factors, yet the USD/JPY does not seem to have risen much.
※ Positive economic indicators and expectations for the passage of the US tax reform bill
There are many risk factors in the market, but they are not being brought to the surface or even surfaced at all.
Good times do not last long, just as bad times do not last long.
From next year, when risk factors surface, there is a possibility that IMM yen short positions could swing to become yen longs all at once.
If you are looking at USD/JPY from a long perspective, please be very careful.
Blog here — I have added market trends and chart analysis.
To those who wish to win in FX trading ~ The Path to Becoming a Consistent Winner Trader ~
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