The USD/JPY pair tried to rally during the session on Tuesday, but as you can see ran into serious trouble once the gap was filled from past sessions. The resulting candle is a shooting star in this makes sense of course because the Federal Reserve is going to make its decision on quantitative easing. Since we have a hammer from the previous session, this means to us that the markets were going to go sideways and to we get that announcement, and then we should see some real volatility. Until then, we are simply staying out of this market.
Written by FX Empire