It was reported by Bloomberg News that Nomura Holdings Inc, Japan’s biggest brokerage firm is recommending buying USD against Yen between the current level and 101.75. This is what Nomura analysts, including Jens Nordvic and Yujiro Goto, wrote in an e-mail yesterday: “The FOMC meeting this week could be a catalyst for USD gains. We think removal of guidance related to the 6.5 percent unemployment threshold will weaken the Fed’s forward guidance on the margin, which could see some increase in US rates and USD support.”
This recommendation is being supported by the technicals as well. A look at USD/JPY H4 chart shows bullish divergence developing on Stochastic and MACD oscillators. If this bullish divergence does indeed gets confirmed it means going long on USD/JPY can reap in a few hundred pips easily. The situation will become more clear by tomorrow after the FOMC meeting. This will be the first press conference by Yellen the new FED Chairman after Ben Bernanke.
If you are looking at a good forex system, you should take a look at FX Extreme Profits System that has a winrate of 92%. This system uses the usual concepts of support/resistance in making the entry and exit decisions. Trading USD/JPY with this system in the next few days can hopefully generate a nice profit of a few hundred pips. In the last few days USD/JPY fell more than 200 pips. Now USD/JPY is all poised to make a recovery.