Greetings fellow traders!
I hope you’ve been paying attention to the forex market lately because there is a massive profit opportunity ripe for the taking. The Japanese Yen has been taking a beating lately. It has been falling in value since July of 2012 and in my opinion the conditions are such that it will most likely continue its downtrend for a bit longer. Japan’s new PM (Prime Minister) Shinzo Abe is determined to stop the nation’s past rampant deflation. In order to achieve this long term goal he has recently been putting a lot of pressure on the BoJ (Bank of Japan) to set it minimum inflation target at 2%. We will know for sure if this policy is adopted or not at the next rate review meeting which should take place January 21 to 22. Once this policy is officially adopted and announced to the world it pretty much guarantees continued easing by the BoJ most likely in the form of an increase in its 101 trillion Yen ($1.2 trillion) asset buying and lending program.
Now the question is, should we put on further short Yen positions? Personally I’ve been short Yen since November 2012 (ie long gbp/jpy, eur/jpy, usd/jpy). I think yen pairs will continue to rise and this is what I’m betting on. Is it too late to get in this if you missed the train two months ago? It’s tough to say, but most likely not. You gotta make sure you get in on retracements and set a fairly wide stop loss and wait it out.
Feel free to tell me what you think and share your trading idea(s) or your opinion regarding my current yen bearish position.
Join me in the Interactive Trading section of my forum and let’s chat:
Now if you’ll excuse me it’s time to get back to my trading.
Happy trading and many pips to you all!
- Forex Weekly Review and Outlook – Dollar Weakness and Yen Strength Expected to Continue after G7
- Mid-Day Forex Technical Report – Markets Continue to Consolidate, Yen Mildly Up
- Japanese Yen – Your Next 400% Winner?
- Quake Response Puts Yen on the Line
- How to Make a Killing in the Yen