The monetary policy statement is on the agenda and all eyes will be on the Yen pairs. I don't think I will trade this event because in contrast with dollar index yesterday I don't see a high probability set-up. Both USDJPY and EURJPY show a response to the low's that have been counted as a wave 1 by many analysts. This can be correct I admit but for me it is 50/50 because pretty much all characteristics have been broken. Those who know me for a while know that I'm not chasing anything and rather enjoy my evening than trade low probability trades. So what's my plan, I will wait and see what the first response will be. IF we see the bullish trend start, there will be plenty of trading opportunities on the horizon, I'll wait in that case for the next consolidation and trade high probability and better risk/reward than what's possible from the current levels.
The only way that BoJ can make me trade this event is if it goes lower first. I see the high risk in a disappointing BoJ because the market is very biased. There are many reasons for that which I understand but that doesn't impact my trading. In the chart I mentioned the possibilities trading this event according to my book. I'll update tomorrow and then we can come up with a high probability set-up with a minimum risk/reward of 3/1.
EURJPY
GBPJPY
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The only way that BoJ can make me trade this event is if it goes lower first. I see the high risk in a disappointing BoJ because the market is very biased. There are many reasons for that which I understand but that doesn't impact my trading. In the chart I mentioned the possibilities trading this event according to my book. I'll update tomorrow and then we can come up with a high probability set-up with a minimum risk/reward of 3/1.
EURJPY
www.timstuyts.com
www.facebook.com/wwwtimstuytscom
