On Monday I asked the question;

Are dollar bulls setting themselves up for disappointment ahead of the Fed?

I had been watching the levels in USD/JPY hold prior to today and they’ve all been blown now. 103 is the next target and breaking that may be a stretch too far with only a couple of hours to go.

My plan was to sell into any dollar strength up to the FOMC and let a dovish Yellen give me my profit and then load up longs again. Given the strength of the current rally the risk is that she’s got to be extra heavy on the dove scale to get this sucker down. If she isn’t overly then I only see maybe 30-40 pips max downside before the dippers start buying in. If she talks rate rises or goes to the darkside of the bird scale then we’ll be right off to the races through 103.

This is what watching price action is all about, especially for short term or intraday trades. It’s fine to have strategy one moment but you have to watch the prices in five minutes, an hour, half a day etc down the line in case your strategy needs changing.

On today’s action I’m probably going to leave the short alone for now, unless the big figure becomes too tempting, and I’ll just concentrate on soaking up any aftermath dips. The market has got the bit between it’s teeth over the US economy doing well and it’s not going to give it up lightly.

Good luck if you’re trading over the announcement and let us know what your looking to trade and how.

Is dear old aunty Janet preparing to lay waste to the Dollar bulls?

Is dear old aunty Janet preparing to lay waste to the Dollar bulls?