August 6, 2018 08:32: Dollar/Yen trade strategy [From Mr. Tetsu Emori's email newsletter]
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From the investment newsletter “Real Trading Strategy by Tetsu Emori” provided by GogoJungle, here is a small excerpt from this morning’s dispatch. This time, please review the trading strategy for USD/JPY that fell to the low-111 yen range.
We remain long on USD/JPY. It may turn down, but we will maintain the position until it breaks below 110.65 yen. There are increasing voices cautioning about the risk of a stronger yen in the summer. The US jobs report for the 3rd released without issue, but with the current wage growth rate, the pace of rate hikes is unlikely to accelerate, and the market seems to view that inflation may not pick up. The chart shape has also become a bit flat. It may drop for now, but let’s wait a little longer. This week, the bilateral ministerial-level new trade talks (FFR) on the 9th between Japan and the US are expected to attract attention. If a harsh outcome emerges, it could lead to dollar selling and yen buying. This risk should be kept in mind. Also, we should keep a close watch on Japanese stock movements.
Quoted from “Real Trading Strategy by Tetsu Emori” (Tetsu Emori).
Concerns over intensifying Sino-U.S. trade frictions continue to be a heavy burden on investor sentiment. It would be prudent to consider the possibility of yen buying advancing. (Editorial staff)
USD/JPY, 1-hour chart.
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