USDJPY: Pre-FOMC Outlook

Coming in 2 days, arguably the most important FOMC meeting will take place and the last opportunity of the year to raise the interest rates is this meeting. If they do raise the rates, then the USD is expected to rise. And with it, all USD/xxx crossed pairs should do the same. So if that is the case, then what happens to the USDJPY pair? Already, in front of this meeting, the USDJPY has already been on a strong rise following the very strong and sustained drop from more than a year ago.

DAILY CHART

That HUGE move up you see that took place in the current MONTHLY chart above is broken down in this Daily chart and you can see that it was a wave iii according to my wave count. In fact, the way I have it labeled is that it was a wave iii of (iii)! The most powerful of the most powerful waves in wave counting! The problem (if you can call it a problem if you are still LONG on this pair!) is that it is not easy to judge when such a powerful wave is to end! It can extend for awhile! As you can see in my Daily chart below, I still don't see the end yet! It still has some more to go. And being that I am counting this as the wave ii of (iii), that means that the overall larger wave (iii) is also not done!

4HR CHART

In this current updated 4HR chart of USDJPY, what you see is how I am projecting that this wave iii should end. What's obvious is that I still see it heading higher! It isn't done yet! More than likely, the FOMC interest hike will drive it higher. Most likely in the form of a spike high. But be warned! I don't see that it will drive it THAT much more higher since much of this rate hike is expected and prices into the charts already making any reaction to the rate hike just icing on the cake.

Comment:

Anyone how was wise enough to follow me on this pair, move your stops above entry and lock in profits. So far on this trade, me and my members are up over +320 pips and I still think there is more upside to go yet.....but lock in some profits as there is going to be a reversal coming soon! Not sure when but better safe than sorry! Use a trailing stop if you so desire. ENJOY THE PROFITS!