"Tends to be automated" is trending in the Oriental Economics ONLINE column

Good morning, this is Matsushita.

Late last night in the foreign exchange market, there was a rapid

depreciation of the U.S. dollar.

Against the Japanese yen, there was also a rapid move toward U.S. dollar weakness/yen appreciation,

and FX investors must have been surprised.

Watching this price movement, I thought that it was, in a way, automatic movement,

and I was not very surprised.

“Ah, it has accelerated.”

Something like this.

The words that came to me at that moment were

the title for today,

“Trends are in automatic control.”

In the USD/JPY pair, a complete USD weakness/yen strength trend

has not been established, but

since the high in early November last year, a gradual yen-strength trend has been forming in the most recent daily candles.

On 1/17 last week, it bounced back sharply with a bullish candle,

making one think, “Will it enter again into a trading range?”

but the rise did not continue and the highs were gradually lowered,

and the day before yesterday an ominous-looking bearish candle began moving toward lowering the previous low,

and yesterday, with a thud, it dropped,

expanding the short-term downtrend from the previous 1/17 low.

The next milestone is the 9/8 low from last year,

and if that is broken lower, it will feel a bit unpleasant.

For sellers, profits simply expand, so

the decline is welcome, but beginner investors tend to bias toward buying,

so in medium- to long-term downtrends, there is likely to be widespread disappointment.

However, trends are the flow of the market,

and it is difficult to go against that flow.

In a sense, trends automatically go as far as they can,

so it is easier if you can ride the flow rather than resist it with force.

Naturally, if you can ride the price movement,

profits will automatically rise.

That is what a trend is.

You will understand that it is something very important in investing,

so learn about trends and use them.

It is something everyone loves—a

path to automatic profit expansion.