My picks: Long USD/JPY @ 96.50 Limit
Expertise: Global Macro
Average Time Frame of Trades: 1 week
This Wednesday, I will try to initiate a long position in the USD/JPY ahead of the FOMC rate decision at 2:15 PM ET. The U.S. Federal Reserve is widely expected to keep the Fed Funds rate unchanged at the 0.25%-0% range. “Economic conditions are likely to warrant exceptionally low levels of the federal funds rate for some time” and the decision to keep rates at a record low will not surprise. However, this event-risk is a great opportunity for a “Buy the Rumor, Sell the News” type of trade since the release of the FOMC statement has the potential to cause a powerful wave of volatility.
