USDJPY, trading setup ahead FOMC DEC 2016
At D1 TF the formation of third wave finished and the fourth wave was just little retraced( 0.236 fibs only), and quickly it’s been popping up up to currently (probably) to fulfill its 5th wave at around 116.xxx; I suppose stronger supply for USDJPY will be met at around 116.66x – 116.9xx until FOMC on Dec 14th 2016.
The 5th wave but can also be ended at 115.9xx and the price will be in a corrective phase for a while. alternative scenario is that USDJPY will retrace to the second depicted zone of fourth wave at 114.66x before FOMC and keep waiting around there for Fed’s call of rate hike and pop up from there shortly before the decision thereof, in case there’s a positive rate hike, 0.5 basis points up to 0.75 basis points, then we’ve got a lovely pop up; 0.25 basis points will be then interesting.
In Other View Point – Long based on Clone Level – Intraday trade
I am expecting it to rise more till fomc. Watching current Clone level 115.5 closely. Planning to long this from 115/115.60 (whichever comes first) for target 116/116.5 Clone levels: For Upside: 115.60-116-116.6x For Downside: 115-114.5 Note: This is not a trade advise please do your due diligence before placing the trade.