Forex: Weekly Review. Currency fundamentals US Dollar/Japanese YenFX:USDJPYjohnelfedforexblogThe week starting Monday 27 October opened with a 'gap higher' thanks to positive US / CHINA talks. And for a few days (even without US data), everything seemed quite straightforward, the FED were about to cut interest rates, with more on the way, company earnings remain generally solid. We had a nice period of 'good old fashioned risk on trading'. With the JPY ,USD and CHF all weak. But fast forward to Wednesday's FOMC meeting and the boat was rocked by a hawkish narrative. A rate cut was delivered as expected but indications a December cut is far from certain reversed USD weakness and put the breaks on the S&P's attempt to push all time highs. To confuse matters more, we also got conflicting information from Japan. The BOJ held rates, the statement indicated another rate hike is very much on the cards. At the press conference, governor UEDA tried his best to remain dovish. But data coming out of Japan suggests a hike is required. All in all, I still view the JPY as the best short option moving forward. But in many ways, the sooner the BOJ does hike, the better. The BOC and ECB also held interest rate meetings. The ECB meeting was a non event but the BOC was interesting, a 'hawkish cut' gave the CAD some strength, the BOC has no imminent plans for extra cuts. But data coming out of Canada could test that narrative. In other news, GBP woes continue thanks to continued fiscal concerns. The upcoming BOE meeting will be interesting, a 'dovish twist' could be on the cards. Mega cap tech continues to shine, which will likely see the S&P continue to push all time highs. All in all, despite the hawkish FED narrative, there is enough positivity for me to begin the new week with my 'risk on bias' in tact. I'll be keeping a keen eye on the USD to see if the post FOMC boost continues, which could see the USD join the 'to long list' in a risk on environment. On a personal note, it was a week of two trades. Arguably, I could have placed more. But in the midst of the positivity early in the week, an AUD USD long hit profit. Thursday's AUD CHF trade stopped out before heading to the profit target, there is a strong case to say USD long would have been the better option at the time, given the freshness of 'hawkish twist narrative'. Let's see what the new week brings.