The droning has stopped and now the real questions get asked
Is further confirmation of another hike this year, something that was widely expected anyway, worth 120 odd pips? That’s probably at the top end of what I would have expected to see, thus why 112.50 in USDJPY was on my radar. We topped out at 112.51 and now are holding 112.20 support where the 100 DMA sits.
EURUSD and GBPUSD have held their respective lows for the night but are finding resistance at their respective big figures.
I doubt this is the end of the story but for now, the immediate USD buying pressure has eased. Asia tarders may have something to add when they come online but if they don’t we could see some sideways action until one side takes control again. If the USD bulls really want this, they need to take out 112.50 in USDJPY properly. If not then GBP and EUR dip buyers are going to turn up in force.
For my cable liongs, I’m going to set a stop at 1.3430. I think 1.3450 holds now but just in case there’s any stop run shenanigans overnight, that should keep me out of the way. I’ll also set provisional TP at 1.3520 and 1.3550 but if they’re not done by the time I get up tomorrow, I’ll nurse the trade and see what I can get.