Scenario Analysis: BOJ and USD/JPY – Trendsetter FX

Trading a forex pair is challenging ahead of key events like central bank rate decisions. And when it comes to Bank of Japan (BOJ) the difficulty level is altogether different.

Given the current noise about the ‘N’ number of thing the BOJ could do, it is very essential that traders jot down the number of scenarios that could unfold with the BOJ decision tomorrow. Stakes are high as markets fear BOJ’s next move could have broader market implications. This makes trading the Dollar-Yen pair even more difficult.

Wilson Leung, Director at Trendsetter FX details the possible action in the USD/JPY following the rate decision. The pair finds itself stuck in a range ahead of the key events – BOJ & Fed.