FOMC minutes made every dollar bull screaming like Frankenstein movie, "It's Alive!". So if rate hike odds at June meeting are suddenly higher than obvious question comes to mind is, 'What about USD/JPY?'. It has already put cracks on dreaded 110 resistance and now traders will start looking for 112 and 114 levels. If you want to take a leap of faith then there is nothing wrong in jumping on USD/JPY wagon hoping for few hundred pips upside.
Only caveat or caution needs to be addressed is that if stock market start throwing tantrum then a drop of couple of percentage point might make Fed chicken out and go back to their equivocal tone until the meeting. Which will make the USD/JPY path unpredictably curly.
As we don't know the future, we will trade it as current price action dictates. Until Fed start saying otherwise, we will keep long bias on yen pairs, especially USD/JPY. On pullback, 109.60 must hold for solid footing. It can even swoon to 109 without threatening up leg but for us to be committed without doubt, it must show pulse protecting 109.80 / 109.60.
Only caveat or caution needs to be addressed is that if stock market start throwing tantrum then a drop of couple of percentage point might make Fed chicken out and go back to their equivocal tone until the meeting. Which will make the USD/JPY path unpredictably curly.
As we don't know the future, we will trade it as current price action dictates. Until Fed start saying otherwise, we will keep long bias on yen pairs, especially USD/JPY. On pullback, 109.60 must hold for solid footing. It can even swoon to 109 without threatening up leg but for us to be committed without doubt, it must show pulse protecting 109.80 / 109.60.
Taking half position off with roughly 50 pips gain with our trading around 109.80 / 110 and let's see how it goes from here.