June 21, 2019 02:26: Real-time Practical Trading by Rikio Shima Strategy [From Mr. Shima Rikio's Newsletter]
From the investment email newsletter “Shima Rikio’s Real-time Practical Trades” by Shima Rikio, provided by GogoJungle, here is a small excerpt from what was distributed today.
Iran announced that it shot down a U.S. drone that had entered its territory, but the United States acknowledged that the drone was shot down “in international waters.” After a meeting with Canadian Prime Minister Justin Trudeau, President Trump spoke at a press conference, saying, “Iran has made a big mistake” and, when asked whether military action would be taken, “you will see.” In the latter half of the press conference, his wording softened to something like, “maybe a high-ranking Iranian military officer made a mistake and shot it down,” and “it’s hard to believe it was deliberate.” He probably does not intend to wage war with Iran.
However, from the point of admitting the drone’s downing, the market shifted rapidly to risk-off. The euro/yen, which had risen to around 121.90, suddenly fell to around 121.10; the euro/dollar could not sustain the 1.13 level and softened; the dollar/yen dropped sharply from the upper 107s to around 107.25. I think President Trump does not want to pick a fight with Iran, but it is slipping below 107.50 yen and leaning toward risk-off. With a contingency in mind, I would like to add a short position in dollar/yen.
USDJPY −0.5 @ 107.99
EURUSD +0.5 @ 1.1255
EURUSD +0.3 @ 1.1338
EURUSD +0.5 @ 1.1230
New USDJPY −0.3 @ 107.35
“Shima Rikio’s Real-time Practical Trades” (Shima Rikio)quote.
Geopolitical risk is rising and risk-off is underway. It might be wise to anticipate further yen buying in the future. (Editorial staff)
