EURJPY tested the upper bounds of its current 4-day trading range on Tuesday, as the other carry pairs and majors bided their time in sideways price action ahead of Wednesday's FOMC decision. EURJPY remains below both Friday's high and the 1-month trend-line on the daily chart. While the short-term trend remains lower for this pair, the FOMC results could spark a move above resistance to test the 160 level. While the trends on the shorter-term time frames remain higher, the intermediate-term trend on the daily chart remains lower.

USDJPY held Monday's rally and looks ready to give a serious challenge to the current resistance line on the daily chart drawn from the 12/28 high to last Friday's high. Market participants point to the recent rally in Yen as being more technical than fundamental, due to the unwinding of the carry trade brought about by equity losses. However, the trend is still up, albeit looking ripe for a correction, with the potential impetus being tomorrow's FOMC decision. A sell off in Yen – the equivalent of rally in USDJPY -- would be welcome by the BOJ also, which remains slow to give up its weak Yen policy.

EUR held Monday's gains despite a stronger than expected U.S. Durable Goods number. The short-term trend on the daily EUR chart is now arguably higher, from its previous sideways stance, and pointed toward a move on 150, which is the high of this bull market to-date. EUR is still trading just below 148.00. Sentiment that the ECB will likely cut rates is dissipating, and even if it does cut rates, it will likely be less than European exporters are hoping for, which supports the continued bull thesis.

GBP is pointing toward a break out above its bear trend line and a move on 200.00, but it would take a larger rally than that to break the intermediate and long-term bear grip on this market.

Should you have any questions about markets or trading strategies please feel free to give me a call.

DISCLAIMER: Forex (off-exchange foreign currency futures and options or FX) trading involves substantial risk of loss and may not be suitable for every investor. The value of currencies may fluctuate and investors may lose all or more than their original investments. Risks also include, but are not limited to, the potential for changing political and/or economic conditions that may substantially affect the price and/or liquidity of a currency. The impact of seasonal and geopolitical events is already factored into market prices. Prices in the underlying cash or physical markets do not necessarily move in tandem with futures and options prices. The leveraged nature of FX trading means that any market movement will have an equally proportional effect on your deposited funds and such may work against you as well as for you. In no event should the content of this correspondence be construed as an express or implied promise or guarantee from B.I.G. Forex, LLC and Brewer Investment Group, LLC or its subsidiaries and/or affiliates that you will profit or that losses can or will be limited in any manner whatsoever. Loss-limiting strategies such as stop loss orders may not be effective because market conditions may make it impossible to execute such orders. Likewise, strategies using combinations of positions such as spread or straddle trades may be just as risky as simple long and short positions. Past results are no indication of future performance. Information contained in this correspondence is intended for informational purposes only and was obtained from sources believed to be reliable. Information is in no way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted.