A late day sell off in U.S equities on Tuesday coupled with crypto currencies selling off heavily today set up a tone of “risk off” trading today.
A short in the USDJPY was taken after a reversal pattern set up in advance of the U.S. session overlap risking 10 pips for a potential 50 pips to our daily target at 108.73. The trade moved down and we tightened up our stop loss in advance of the U.S. session overlap.
With flows moving toward safety, the JPY benefitted and the USDJPY dropped quickly to our target where we exited the trade. The FOMC meeting minutes were pending two hours after the London close but the markets were fearful with U.S. equity futures pointing to continued selling and cryptos plummeted.
On Thursday, we have initial jobless claims and Philly Fed manufacturing index releases pending.
Good luck with your trading!
