March 26, 2019 08:04 AM: USD/JPY trading strategy [From Mr. Satoshi Emori's newsletter]
From the real trading strategy investment newsletter “Tetsu Emori's Real Trading Strategy” by Tetsu Emori, provided by GogoJungle, here is a small portion from this morning’s distribution. This time, please take a look at the USD/JPY trading strategy.
We will maintain a short position on USD/JPY. The sense of being oversold in the short term is strengthening. We will check whether it can stop falling here. If it exceeds 110.30 yen, we plan to close some positions to lock in profits. That said, if the stock market continues to weaken, there is still a possibility of further downside. We want to monitor without bias. As seen in this instance, if investors’ risk-off posture strengthens, the yen tends to appreciate. It is also true that it is not so easy for the yen to depreciate. With the decline in U.S. interest rates, the U.S.-Japan interest rate gap is narrowing notably. As a result, relatively lower-yield currencies like the euro and the yen tend to be bought. It is only relative, but it is also true that there has been excessive dollar buying up to now. It is important to keep in mind that unwinding dollar longs can easily trigger dollar weakness and yen strength in this environment.
『Tetsu Emori's Real Trading Strategy』 (Tetsu Emori)quotation from.
Mr. Emori notes that the inversion of the U.S. long and short rates and the overall decline in rates themselves are putting downward pressure on the yen. As of 11:00, USD/JPY is hovering in the 110 range. It seems necessary to watch the trends of major countries and devise strategies that could allow for yen appreciation even if it progresses. (Editorial Desk)
× ![]()
