Usd/jpy
- Thread starter 4Xgorilla
- Start date
http://www.thestandard.com.hk/news_detail.asp?pp_cat=22&art_id=14388&sid=7093315&con_type=1
This week will end the second consecutive year in which Japan?s Ministry of Finance has abstained from intervening in forex markets. This is noteworthy, perhaps, in light of the fact that the Yen is poised to begin appreciating, on the heels of Japanese rate hikes. Most analysts do not expect the Bank of Japan to intervene if the Yen does begin to rise, because Japan?s economy appears to be in good shape. Several years ago, when the Bank of Japan spent over $300 Billion to prevent the Yen from rising, Japan?s economy was still fragile and forex intervention could be more easily justified. The Standard reports:
Japanese officials say there is no change in their standard refrain that currencies should stay in line with economic fundamentals, and movements should not become too volatile.
Read More: Tokyo tipped to let yen rise
This week will end the second consecutive year in which Japan?s Ministry of Finance has abstained from intervening in forex markets. This is noteworthy, perhaps, in light of the fact that the Yen is poised to begin appreciating, on the heels of Japanese rate hikes. Most analysts do not expect the Bank of Japan to intervene if the Yen does begin to rise, because Japan?s economy appears to be in good shape. Several years ago, when the Bank of Japan spent over $300 Billion to prevent the Yen from rising, Japan?s economy was still fragile and forex intervention could be more easily justified. The Standard reports:
Japanese officials say there is no change in their standard refrain that currencies should stay in line with economic fundamentals, and movements should not become too volatile.
Read More: Tokyo tipped to let yen rise
Consider longs again
I expect near month (June) YEN futures to trade below .008500 most of this week, and nearer .008400 than .008500. Will short one or more this session, entry T.B.D. Won't enter above 8555, since I'll set stop(s) not less than 40 ticks from entry and no higher than 8595.
Will look for more than 140 ticks profit and even more if 8400 breached this week.
Premise is same as in March: US interest rates and price effect of positive carry.
Will look for more than 140 ticks profit and even more if 8400 breached this week.
Premise is same as in March: US interest rates and price effect of positive carry.
Basically, I agree with you. The first aim of it is 115.60. If it can break this point, I think maybe it can reach 110 at the end of this year. Hope I can earn good money for this pair.
Interesting that you agreed with him, but his comment was that the time was right for shorting last November. Clearly that was not a good call - unless you play by the year. And that's not smart considering the interest this pair eats up.
But I do agree that the timing looks right about now - April end.
But I do agree that the timing looks right about now - April end.
My pea shooter didn't scare YEN bulls. My two YEN shorts, entered this session at avg 8550, underwater all day, but have improved from 8582 session high (which was 70 percent of the distance to my stop).
Still expecting US interest rate expectations to win out sooner rather than later, i.e., this week, with YEN to trade closer to 8400 than 8500.
Still expecting US interest rate expectations to win out sooner rather than later, i.e., this week, with YEN to trade closer to 8400 than 8500.