In my last trading post I continued coverage of USD-CAD, as that was prevailing theme. That entry was made a bout 3 hours before markets closed for the weekend. Well, some time later, as I was wrapping things up I decided to jump into one more trade. I bought EUR-JPY. My entry price turned out to be 167.45. Trade has appreciated a few pips before markets closed, but for all practical purposes is unchanged, so I can feature it here.

I’m looking for a run of about 50 pips to 167.95 or so. It is possible we will see it happen before Europe opens. O.K., than, I have 2 live short tern trades to follow. Things should be interesting from the start.
Important development coming on Tuesday. Yes, it is time once again for FOCM. In other words, interest rate decision. I have get something out in the open- I DON”T trade economic news releases. I don’t try predict what the “number” is going to be, and more importantly, I don’t try guess market’s response. Markets will do what they do, for most part surprise everybody. I consider FED announcement to be the “biggest” of the scheduled news, and try not to enter any additional trades right before it takes place. More often than not, initial reaction is a whipsaw and iItry to avoid it. Sometimes I even close most of the trades generated by my mechanical systems.
This subject will come up in my post over next few days, as the response to this FOMC decision will likely push the dollar either on a run, or to new lows. In other words, I consider this event very important.

Mike K.