I know the title might have you thinking this post is about healthcare and to a very, very small extent it might be, but it is more about what next weeks market is set to bring us. With the failure to pass the healthcare bill, (I live in the U.S. and this failure makes me happy, it was very bad legislation) does this set up the possibility for all of us to make a lot of money trading Forex and Binary Options. I guess it really all depends on the markets and if they have or have not already absorbed the possibility this bill would fail. Take for instance the last U.S. interest rate hike, what happened?? The USD/JPY SANK like a bag of rocks. WHY? The market was already prepared for it. It had already taking into account the 90% likely hood that it would happen.
The Failure of the RyanCare healthcare bill to even garner enough votes to bring to the house floor for a vote brings into question the ability for President Trump to bring the party together and pass any kind Tax reform. As you may or may not know, they premise of tax reform by President Trump is one of the main driving factors behind the surge in the markets and currency markets. Given that, one would be inclined to think the USD/JPY is in for an even bigger hit that it has been taking over the 2 months even though most all indicators show the currency pair is due for a correction.
My personal opinion is the pair is likely to see a small pull back to the up side before continuing its descent to the big round number of 110.000.. There toward the end of the day the pair climbed from from a low of 110.600 (Approx) to close at 111.285 which happens to be just a few pips shy of a 4H resistance level. Over the last 13 trading periods (4H) the pair has been bouncing off a 4H resistance and a 1 day support level. Maybe this failure to pass heath care will be the trigger to break the pair out if this current consolidation zone.
I now leave it open for discussion.