Wednesday 24 January.

Yesterday's JPY price action is a good example of how powerful 4hr support and resistance can be. The initial strength following the press conference couldn't close below support and the subsequent reversal couldn't close above resistance. (As I write this USD JPY is having another attempt at breaking lower).

Currently, I've placed 0 trades this week. But that's fine, it took me a long time to accept that my system doesn't offer trades everyday. And I'll be posting soon about over trading and under trading.

But as far as today is concerned, we have PMI on the agenda, any strong numbers will likely back up the strong economy narrative and keep the USD supported. Or any weak numbers could bring back talk of earlier rate cuts or possibly even recession. We also have the BOC (Canada) interest rate decision. I expect the 'race to cut rates' to play a big part in the currencies strength and weakness over the coming months. So, any indication of when Canada will cut (1st, 2nd or 3rd quarter?) Could potentially create a CAD trade.

But for now, it's a case of staying patient and waiting for a trade to fall into my lap.