February 5, 2019 08:33: Dollar-Yen trade strategy [From Mr. Tetsu Emori's email newsletter]
From the investment newsletter "Tetsu Emori's Real Trading Strategy" by Tetsu Emori, provided by GogoJungle, here is a small excerpt from this morning's delivery. This time, please take a look at the trading strategy for USD/JPY.
We will maintain a short position on USD/JPY. It has risen, but the background is dollar strength. With euro and pound softness, the dollar is relatively more likely to be bought. Additionally, the rise in U.S. stocks and the accompanying increase in U.S. interest rates are also prompting dollar buying. Right now, the dollar is being bought on a positive backdrop. Last year, the dollar was bought as a risk-averse currency, but this year it is being bought as a risk asset. In this way, the dollar changes its stance depending on the market environment. It is also important to observe how market participants think. Therefore, going forward, it should be anticipated that when stock prices fall, USD/JPY will fall and move toward a stronger yen. Since I believe that will happen eventually, the short-covering (rebound selling) posture will continue.
From "Tetsu Emori's Real Trading Strategy" (Tetsu Emori)quoted.
As of 11 o'clock, USD/JPY is in the 110 yen range. It is not yet clear how the yen will be affected by Japan-U.S. trade negotiations, but it seems necessary to prepare for risk. (Editorial staff)
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