April 5, 2019 08:22: Dollar/Yen Trade Strategy [From Mr. Satoshi Emori's Newsletter]
From the investment newsletter "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 market is showing an oversold sentiment. At the same time, it has risen to a very important level of 111.60 yen. If this is broken, the outlook could change. In the market, there are increasing questions like, “Why does the yen continue to weaken?” Providing a satisfying explanation is quite difficult. One reason may be the continued decline in U.S. interest rates. Also, market attention may not be focused on USD/JPY. Rather, the market is concentrating on the relationship between European currencies and the U.S. dollar. However, once the U.S.-Japan trade negotiations begin, interest is likely to rise to some extent. Still, the theoretical value of USD/JPY, based on the U.S.-Japan real interest rate differential, is in the mid-113 range. That theoretical value is currently below that level, meaning the yen is currently strengthening. This could be supporting factors for USD/JPY. The remaining thing is to closely monitor stock price movement.
‘Real Trading Strategy’ by Tetsu Emoriquoted.
Mr. Emori emphasizes that it is crucial to always build trading strategies with a “sell-side” perspective. Today, the U.S. nonfarm payrolls will be released, but U.S. economic indicators have continued to underperform expectations. We are watching closely to see what the payrolls result will be. (Editorial staff)
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