Currently, many risky assets, such as the Dow Jones Industrial Average, are trading within very tight ranges, leaving potential open for breakouts. One factor that helped to boost sentiment in Japan last night was the announcement of a plan to inject state money into ailing companies in exchange for equity stakes and will most likely be designed to target smaller and mid-size companies that employ some 70 percent of the country’s work force. Looking ahead, the Federal Reserve’s upcoming rate decision and policy statement could have a large impact on risk trends, so traders should beware the event risk on Wednesday afternoon.
Related Article: Japanese Yen Weekly Trading Forecast
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