Live by Monthly Footprint Trading | Episode 13: When will the foreign exchange market experience a historic strong yen [Relaxed Forex]

In long-term trading, it is important to buy yen as high as possible to prevent swap points from being eaten away by unrealized losses, but how often can one create a position when the yen is strong? This time, as we review the long-term charts of major currency pairs, we will consider “when will historical yen strength occur?”

Yuttara Currency Profile

Yuttara Currency. Individual investor. A “slow trading” camp with an extremely low trading frequency. Studying every day with the aim of achieving great success in FX. Holds accounts with various FX companies and is familiar with a variety of services within the industry.

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Buy when the yen is strong to secure foreign exchange gains

When holding a position over the long term from a broader perspective, I target profits from two aspects: swap points and exchange rate gains. This series assumes holding positions on a monthly basis for years, and in some cases 10 to 30 years. In other words, the size of the swap points becomes very important.

Nevertheless, unrealized gains and losses are also extremely important. For example, if you were to settle as retirement funds, and swap points are positive but unrealized gains and losses are negative, that would not be interesting. After holding a position for a long period, the magnitude of the unrealized loss might erase the swap benefits and turn them into a loss.

To avoid that situation, I would like to buy as high as possible when the yen is strong. For example, if AUD/JPY is bought at 60 and sold at 100, the profit margin is 40 yen (4000 sen). Together with swap points, this would be a satisfactory result.

So how often can you create positions during such yen-strength periods? This time, we will check “when historical yen strength will occur.”