April 11, 2019 08:26: Dollar-Yen Trade Strategy [From Mr. Satoshi Emori's Newsletter]
From the real trading strategy newsletter "Tetsu Emori's Real Trading Strategy" by Tetsu Emori, provided by GogoJungle, here is a small excerpt from this morning's issue. This time, please take a look at the USD/JPY trading strategy.
We will maintain a short position on USD/JPY. It is in a downtrend, and there is still room for further decline. If it falls below 110.75 yen and 110.60 yen, the decline could accelerate, but at that point the market may feel oversold. It might be okay to cover some of the short positions. At least, if it surpasses 111.25 yen, we will consider covering. The currency market still seems unlikely to show large trends. European currencies are in a stalemate as well. With monetary policy being accommodative in major economies, there is a back-and-forth tug-of-war. On the political front, European currencies tend to be sold, while trade issues between Europe and the United States have also emerged. In Japan, the start of US-Japan trade talks could trigger stronger yen appreciation pressure from here on. The dollar is also less attractive to buy as interest rates decline. It seems that the preference may shift toward buying yen by elimination, so caution is warranted for that movement. Additionally, although stock prices remain in the high range, if they start to correct, risk-averse yen buying could strengthen. This is another point to watch.
『Tetsu Emori's Real Trading Strategy』（Tetsu Emori）quoted.
Emori-san says that the ultimate movement of USD/JPY will be determined by U.S. policy. President Trump has repeatedly welcomed a weaker dollar, but we will keep an eye on whether the United States might shift its monetary policy. (Editorial staff)
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