USD selling off now
- Thread starter uninvited_guest
- Start date
Yen seemingly in no-win situation: if US economy hot enough to warrant more hawkishness by US Fed Reserve (the FOMC), then Yen suffers from carry preference for USD's higher interest rates. If US economy not as hot as expected, as true of Friday's inflation and consumer sentiment data, then Yen suffers from expectation of diminishing Japanese export strength.
But "seemingly" is the operative word. The no-win sentiment can change rapidly. That's why, prior to tonight's Tokyo equities open, I will add to my Yen longs, buying two more near-month futures at .__8760 or cheaper (if price moves there), with stops to be set just north/just south of .__8700 (same as initial longs, bought at avg in 8795).
Chood, I appreciate your thought process, but in your funnymental analysis you're leaving out the BOJ banksters.
Central bankers of BOJ are cornered rats, having printing over $200bn worth of counterfeight money for their interventions and eventually they need to close that position.
So it's probably them who are killing the Yen, trying/hoping to cover into the stops of hapless Yen bulls.
Your best hope for a Yen long to work, is if Japanese people start a massive flight into precious metals, like it happened a few years ago, in which case the banksters will probably have to stop destroying the value of their confetti.