USDJPY has been down 125 pips from the overnight highs so is that far enough?
Phase one of my central bank trade is in the shopping trolley. I awoke to the expected news of nothing from the BOJ and USDJPY acting as expected. I've jumped into a small long at 119.45 to see if this BOJ move starts to unwind and we get some bullish expectations in the run up to the Fed
At the moment we're struggling around the 119.60/65 level, which was one level I was looking at to start this trade. For once I've managed to hold my patience and get in at a better level than just taking the price as it came down to it
USDJPY H4 chart
The problem with this trade is that we have a lot of data out today and this week that could throw the prices around quite a bit, so I might have to weather some choppy seas. It's one reason I'm in fairly small and will be happy to add to at lower levels. This is one trade that's going to have to be micro managed at every point to see if I still feel confident in it. A complete collapse in the data will see me jumping out the escape hatch