What is your FOMC trade going to be?

Not long now until the Fed reveal their latest thoughts on monetary policy. How are you going to play it?

On Monday I set out my strategy for trading the FOMC and BOJ. To repeat, I was going to look at buying a decent dip in USDJPY on an unchanged/dovish FOMC to run into an expectation rally up to the BOJ.

There's been plenty of water under the bridge since then. A lot of the BOJ/Japan expectation was wiped out by stories saying that the fiscal stimulus from Abe may not be as big as first thought, and thus maybe BOJ action would be smaller too. That sunk USDJPY but that's been reversed with stories since that stimulus may be up around those early expectations. For me that keeps the trade in tact and the expectation is back in the price, and I want to take advantage of that if the FOMC news goes against it.

All the pieces still need to fall into place but I'm more confident than I was yesterday after the news.

When you have a trade idea or plan you can't be blinkered and gung-ho with it. The market must always fit in with your parameters because if conditions push things outside of those parameters, it just increases the risk to your trade and your account.

I'm pretty much all set so I want to hear what your plans are in this FOMC trade ideas special. Are you taking a view or sitting on your hands?

Lock 'n' load, it's nearly Yellen time.