How are we left after the Fed do nothing?
I've just written about USDJPY in the announcement post but that's already buried under other posts so I'll repeat here
"USDJPY drops to around 120.20/25 and now sits at 120.44. It's a disappointment but most of the market didn't think they would hike so that disappointment may not last. If we hold that low on another test then we may move back to where we started"
We've just had another test of the lower level and it's held. The market is now in a bit of limbo until Yellen starts the presser
If you're trying to fade these moves then be ready for more of the same as she starts the presser. We're going to stay choppy over the Q&A but look for the time that the questions start losing power and she starts sending everyone to sleep. That will be the time that the market will finish waiting and pick its direction
Unless she drops some hawkish bombs I favour seeing the downside tested again and that might be the pattern for a few sessions
