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Feeling gutsy enough to trade the FOMC?

Check out this potential breakout I’m watching on USD/JPY.

Before moving on, ICYMI, yesterday’s watchlist looked at a possible AUD/USD range breakout after the RBA decision. Be sure to check out if it’s still a valid play!

And now for the headlines that rocked the markets in the last trading sessions:

Fresh Market Headlines & Economic Data:

U.S. ISM manufacturing PMI dipped from 50.9 to 50.2 in Oct vs. 50.0 forecast

U.S. JOLTS job openings climbed from 10.28M to 10.72M in Sept

New Zealand dairy prices fell by 3.9% m/m in latest GDT dairy auction

New Zealand employment rose by 1.3% q/q in Q3 vs. projected 0.5% uptick

New Zealand jobless rate unchanged at 3.3% vs. expected dip to 3.2%

U.K. Oct BRC price shop index up 6.6% y/y vs. 5.5% estimate, 5.7% previous

Australian building approvals fell by 5.8% m/m vs. projected 10.0% slide in Sept

BOJ Governor Kuroda: No need to change current easing policy

Japanese FM Suzuki: Will not say when they will intervene but are ready to do so

German trade surplus widened from 1.2B EUR to 3.7B EUR in Sept

Upcoming Potential Catalysts on the Forex Economic Calendar:

U.S. ADP non-farm employment change at 12:15 pm GMT
EIA crude oil inventories at 2:30 pm GMT
FOMC policy statement at 6:00 pm GMT
FOMC press conference at 6:30 pm GMT
RBNZ Governor Orr’s speech at 8:00 pm GMT

Use our new Currency Heat Map to quickly see a visual overview of the forex market’s price action! 🔥 🗺️

What to Watch: USD/JPY

Who’s ready to trade a breakout today?

I’m looking at this freshly-formed symmetrical triangle pattern on the hourly chart of USD/JPY. The pair is testing support, and it looks like we’ve got a big catalyst coming up!

The highly-anticipated FOMC decision would likely determine where price is headed next.

Some are still counting on the U.S. central bank to announce yet another 0.75% interest rate hike while others think that it’s high time to scale back.

If the latter happens, USD/JPY might be in for a break below the triangle support and a selloff that’s at least the same height as the chart formation or roughly 400 pips.

Moving averages are favoring a bearish move, as the 100 SMA is below the 200 SMA to reflect bearish vibes. On the other hand, Stochastic is already signaling exhaustion among buyers, so a bounce back to the triangle top might follow.

Just look out for a break above the 148.00 major psychological level since this could mark the start of another dollar rally.

Yen traders might be on intervention watch, as Finance Minister Suzuki has once again reiterated that they stand ready to dip their toes back in the currency market if necessary.

Make sure you practice proper risk management when trading the news!