As expected, Yellen did not raise any rate. Moreover, all of the projections being revised downwards.
Yellen is quite true to her reputation and most expert analyst already know about this problem.
So, what's the take up from current condition and what we can use to trade? For traders that follow my suggestion to long precious metal, they should have gain quite a lot of money already. You might take half profit and enjoy it in the current condition. As for the other half then it will depend on you fully.
Looking at XAG/USD or Silver's rally, it seems like this cross pair will fall once again when it's near the end of November but 20 range still in sight in near term due to the failure from FED. It's natural for this pair to goes back to that price due to the downwards move from 20.5 range around August because of "fear" that FED will raise rate on 21th September which has been proven to be an empty bullet. I'm not discussing Gold in here but the result might be similiar to silver and it might raise back to 1345 range in near term. Please make your own risk calculation when making the decision. And you can even see that i'm entering position yesterday with my own analysis. Well, that is how confident i am with my own analysis.
Then i'd like to discuss the next popular pair since Kuroda has failed to reduce the BOJ's rate to -0,2%. Currently is stays at -0,1% so no wonder traders will feel dissapointed with it. A downward movement under 100 is very much possible and 95 might be the next long term target. Do you think BOJ might just cut their interest in the next meeting and fear this movement? Well, no joke but that is simply chatterings with no action. They just did not want to admit that they have zero bullet right now. If you watch the BOJ Press Conference then you will hear that Kuroda says they are no longer in deflation.
Ok, so now tell me where is the "no deflation?" Take a look at the inflation rate.. it's -0,4%. If inflation is negative then that is deflation. Kuroda's speech is only fooling people that don't understand the economy. So use your own eye to check and don't get fooled in here. And plus with a bearish decision from FED, 2 factors will push USD/JPY downwards with first inaction from BOJ to become bearish in JPY and second inaction from FED to become bullish in USD. You can see with your own eye the reaction when USD/JPY is around 102.7 with a rate cut hope and it goes down to around 100.7 when they fail to do it. And the fall continues with a dissapointing FED decision till this point.
Then I'd like to discuss GBP/USD, the Brexit country. Heck, i believe that many traders are trading this pair right now. With the QE from BOE and bad CPI data around 0.6% yoy, further downwards is normal but currently it's a bit neutral due to inaction from FED.
"Hey, where is the next direction for GBP/USD then?"
As i said, it's a bit neutral. But if you ask me to choose then i'm a bearish from the fundamental perspective. After all, USD will getting stronger later when it comes near December since market will pricing in a rate hike around that time. But i will avoid trading this pair since the short term outlook is neutral and it will be hard to decide the direction later.
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