A few days ago I mentioned the bearish price action that was plaguing USDJPY ahead of the much-anticipated FOMC statement and BoJ announcement. It all started with the bearish engulfing candle on July 21st. This formation occurred after retesting the pre-Brexit high of 106.80 and indicated that further weakness was likely. Soon after, the pair carved out an ascending trend line support on the 4-hour chart. In fact, when I released Monday’s commentary, prices had already slipped below the level on a 4-hour closing basis. However, as tempting as it may have been to enter on the July 27th retest of the level, pending ... (full story)