April 01, 2019 08:27:00: USD/JPY trade strategy [from Mr. Satoshi Emori's e-mail newsletter]
From the investment newsletter Real Trading Strategy by Tetsuya Emori provided by GogoJungle, here is a small excerpt from this morning’s distribution. This time, please take a look at the dollar/yen trading strategy.
We’ll pass on the USD/JPY for now. In the short term, if stock prices rise, the upside may become more accessible. First, we will confirm whether it clearly breaks above 111. Even if it breaks, if it cannot exceed the resistance at 111.50–60 yen, the upward momentum will likely slow. Since it’s gradually becoming overbought, caution is also required in that region. Conversely, if it falls below 110.70 yen, it will be easier to consider shorts. In that case, we should also closely monitor stock price movements. There appears to be growing interest in a “reverse yield curve” in the market. From the perspective of the yen-bears, there are comments such as “in all past cases of the reverse yield curve, the yen has weakened,” but most of those were underpinned by rising U.S. interest rates, causing a reverse yield curve. This time, if rates fall, it may lead to a reverse yield curve. If so, past data may not apply. Ultimately, if U.S. interest rates fall, the narrowing of the U.S.-Japan interest rate differential will exert yen appreciation pressure. This is something to keep in mind.
『Real Trading Strategy of Tetsuya Emori』 (Tetsuya Emori)Quoted from.
Emori emphasizes that it is not easy for the yen to depreciate quickly, and it is important to always build trading strategies from a “sell-side perspective.” This week there seem to be many important U.S. economic indicators, so let's stay alert. (Editorial staff)
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