It’s a BOC special
Welcome to BOC day! It’s the biggest item on the calendar today and could be a very volatile one. We’ll have some analysis for you later but in the meantime, let us know how you’re going to play it.
On my USDJPY long entered at 108.55 yesterday, took half off at 65 and another chunk at 95. Stop on the balance is up to 56. I’m going to hold on for a 109 break but if that doesn’t come I’ll move my stop up. I still like a short-term long in the 108’s but I’ll look to the bottom end as a persistent failure at 109 might bring a steeper move south. 108.50 wasn’t as strong as I thought it might be so I’m less inclined to trust it again.
For today, I’m getting increasingly concerned about EURUSD looking well supported and that suggests a break of 1.15 is coming. I might dial down my expectations for shorting there. One way to play it would be to lower my trade size on any short vs the size of a stop reverse into a long. Levels are there until they’re broken but we can’t ignore the PA and what it might be saying.
Over to you guys and girls.