September 3, 2018 08:21:00: USD/JPY trading strategy [From Tetsuya Emori’s email newsletter]
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From the investment newsletter “Tetsu Emori’s Real Trading Strategy” by Tetsu Emori, provided by GogoJungle, here is a small excerpt from what was distributed this morning. This time, please take a look at the trading strategy for the dollar-yen pair, which has been trading in a narrow range.
We will maintain a long position on the dollar-yen. It is precisely moving up and down around the 111 level. The key point is which way it will break from this level. In the short term there is room for adjustment, so there is also a possibility of a downside move. It is undoubtedly a very perplexing behavior. There is uncertainty linked to NAFTA, and the depreciation of emerging market currencies has not stopped yet. However, in spite of that, the yen has not strengthened much, which feels rather mysterious. At present, the U.S. side has not made statements targeting Japan regarding trade friction. This could be the biggest reason. As for the U.S.-Japan relationship, I have explained it several times, but it all revolves around “funds.” Whether Japan provides funds to the United States and the scale of that money determines the relationship. Prime Minister Abe is likely maneuvering deftly behind the scenes. In the meantime, the dollar-yen is unlikely to shift toward yen appreciation at least.
From “Tetsu Emori’s Real Trading Strategy” (Tetsu Emori) quoted.
Continuing to watch for developments in emerging market currencies such as Argentina and Turkey is necessary. (Editorial Department)
Dollar-yen, 1-hour chart.
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