JPY weakness intensified.

Even though the BOJ historically abandoned negative interest rates, the fact that a 'hiking cycle' wasn't announced has caused a strong sell off in the JPY. The fact that Canadian CPI was reported lower than expected, combined with the RBA not sounding too hawkish, has added to the 'risk on' mood.

Regarding the CAD, yesterday's sell off following the soft CPI was halted due to the 'risk on' mood plus the rise in the price of oil. Which leaves a short JPY trade the only viable option at the moment.

It's just a question of when to enter? As a catalyst continuation with a stop loss behind a 15min swing? Or stay patient and wait for another 1hr swing?.

I do expect there will be JPY profit taking at some point. But the weakness could persist for a while (especially if chair Powell sounds reasonably hawkish at today's FOMC). It is feasible USD JPY could rise to 155.

Personally, I'm going to stay patient and wait for a little more 1hr support. The risk to waiting is a missed opportunity. And if anyone prefers to enter on a 15min chart, I wouldn't argue with that.

Regardless, I would take any ongoing trade off a short time before the FOMC meeting.

Today's side show is UK CPI, which will be interesting with the BOE rate meeting tomorrow.

Feel free to email any questions: johnelfedforexblog@gmail.com