I’m a trader, that what defines me as me. In order to become a trader, a person must identify him or herself as a trader. In order to be a trader one must become one with the market, with the price, with one’s self. As I meditate on the price there is nothing else, no time, no distractions, and no world outside of the purity of the price. As I mediate on the direction of the price and ask market for guidance, I remain humble and thankful for every lesson the market is willing to teach me for I’m a willing student, a trader and myself. As I become one with the price and seek the future path, I’m a trader and understand that there is no direct route where I want to get, but I’m not lost because I follow the price. Only the price knows where it wants to go, it speaks and I listen, and if I listen correctly I will be rewarded and if I make a mistake I will be punished, but I remain a patient and willing student, a trader and myself. And I thank the market for every lesson that I learned, continue to learn and will learn in the future, for I’m a trader and that is my true self.

As generally expected, USD/JPY has come off following the Tokyo fix. The pair traded up to as high as 117.64 on the back of last-minute importer settlements for the fiscal year. Some choppy trading is eyed for the remainder of the Tokyo day with the market likely to thin out considerably. Most Japanese corporations
and financials are likely to be side-lined henceforth. Granted, the spot date is the 4th but dealers will be in no rush to jump into fresh positions with the market still mostly directionless and choppy. USD/JPY trades 117.33/36. Support below is eyed at 117.10-15, 117.10 the low last night and 117.15 the low earlier
this morning. Stops are still eyed below 117.00. Topside resistance is eyed at today s 117.60-65 high and then at 117.85-90, 117.89 the high overnight.

Into Early Europe and the Dollar continued its broader recovery. USD/CHF soon absorbed offers between 1.3100 and 1.3105 and stops were triggered above 1.3110, but further selling at 1.3125 capped the rally. Spot
worked a 1.3100/25 band as the market awaited the latest KoF data but the release of the headline 1.30 reading failed to live up to the upbeat expectations (1.30 up from the downwardly revised 1.28, against the 1.35 forecast). Bids are now seen at 1.3070 and into 1.3050 with stops below while offers up at 1.3125/30 limit any attempt to push for a re-test of the 1.3150 level.
Looking ahead, the disappointing KoF has taken the focus away from the CHF in the immediate short-run so the market should again turn to the broader Dollar moves to generate the momentum for USD/CHF. Following in the wake of the FOMC there are a slew of Fed speakers scheduled through the North American session.
Geithner and Lacker at 13:45 GMT and 14:00 GMT respectively before Bies in New York and Adams testifies in Washington.

Position closed at 1.7362 with profit 69 Pips.

Sell GBPUSD at 1.7431, stop 1.7475 target open

Now rate is 4.75%, it’s greater then BoE ratre = 4.5%.

The UK press highlighted risks to the pound from continued Fed rate hikes over the weekend, but GBP more than held its own today. Technically, 0.6840 looks like a near-term bear target for EUR/GBP while the outlook for cable is less clear. US rates did drift a bit higher today, offsetting some of the decline seen Friday after soft housing data in the US. A hike for the Fed tomorrow is all but assured and the market has most of a second hike priced in at present. The wording of Bernanke”s first FOMC statement will be closely parsed.

USDCHF position was closed by stop with the result : -66 Pips

Sell USDCHF at 1.2894, stop at 1.296, target open (1.27-1.28)

Swiss Franc bulls crashed below the dollar bids around 1.2943, a level created by the 50-day SMA and proceeded to push the pair toward 1.2890, a level established by the 38.2 Fib of the 1.2240-1.3285 USD rally and is further reinforced by the 200-day SMA. A further move on the part of the Swiss Franc longs will most likely see the USD/CHF extend its decline toward 1.2769, a level defended by the 50.0 Fib of the 1.2240-1.3285 USD rally.