Locking in USD/JPY Gains Ahead of Fed

While there will be no change in interest rates from the Fed, the central bank’s statement will be closely parsed by traders. If the Fed expresses growing concern with economic growth (especially given this morning’s GDP report), the USD/JPY could drop back to 90.00 as traders push back their expectations for the end of QE. On the other hand, a more optimistic tone could quickly take our USD/JPY trade up to the target near 92.00. With our trade well above the entry, it would be prudent to move the stop loss up and lock in gains on the trade.

Commentary from Brad Gareiss and Matt Weller, Technical Analysts, GFT