Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

Japan Goes Short The Jpy

Published 12/31/2000, 07:00 PM
Updated 12/18/2008, 04:15 AM
USD/JPY
-

We have been looking for a base in USD/JPY to place an order that we just let run, and we may have got that fundamental signal overnight. We have seen five sets of intervention from Japan in 27 years of Forex trading, that have lead to sustainable price action, that although against the technical trend at the time of placing, have all followed through to profit. As most are very much aware, the Finance Ministry tends to get what it wants, one way or another. This may be the one pair that the dollar can get to grips with;

"Dec. 18 (Bloomberg) -- The yen weakened from near a 13-year high against the dollar after Japanese Finance Minister Shoichi Nakagawa signaled the nation is ready to intervene in the foreign-exchange market for the first time in four years. “We will take necessary steps if needed” to limit the currency’s advance and protect the overseas earnings of Japanese exporters, Nakagawa told reporters in Tokyo."

 
This could be a perfect yen storm now that the 'Carry Trade' is being re-defined; Santa Rally in equities maybe (nothing too exciting, but maybe a base formed at least), new year = new outlook for stock traders with new valuations, Obama talking the talk in regard to economic action, and finally the Fed fitting a turbo charger to the printing press.
 
Who knows what the reaction will be, it could be that stocks have a lot further to fall, nobody knows until it happens. The fact that the daily chart RSI just hit the 30% oversold level for the first time since March 17th (Bear Stearns day) could all lead to a bit of yen buying, at the same time that the majors continue to nibble at the dollar.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.