With the BOJ’s decision around the corner and USD/JPY reacting to a psychological level, I’ve decided to tighten my stops a bit.
Recall that I jumped on USD/JPY’s uptrend because the dollar is looking like the “cream of the crap” compared to its peers.
Aside from global growth concerns, economies of other high-yielding currencies are also dealing with less hawkish central bankers and have more to lose over the U.S.-China trade tensions than Uncle Sam himself.
Meanwhile, traders remain unfazed by weak domestic reports peppering the U.S. markets. Heck, a weak headline NFP reading has even pushed the Greenback higher!
That doesn’t mean that I’m not limiting my risks, though.
Word around is that the Bank of Japan (BOJ) could start to hint at further stimulus as early as this month. While this could drag the yen, I’m not discounting the possibility that traders will call the BOJ’s bluff (?) or price in a risk-averse environment and push the yen higher against the dollar.
This is why I’ve moved my stop loss from 110.20 to 110.70 when I saw that USD/JPY was reacting to the top WATR level.Now that USD/JPY has hit (and is reacting to) its top weekly ATR, I've adjusted my SL 50 pips higher to 110.70. That's just below last week's low! #forex #trading #usdjpy
— HuckleKiwi Pip (@LoonieAdventure) March 14, 2019
As you can see, 110.70 is still below this week’s open price, last week’s low, and the mid-channel support on the 4-hour time frame.
I’m crossing my fingers that tonight’s BOJ event would extend USD/JPY’s uptrend!
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