September 11, 2018 08:14: Dollar-Yen trade strategy [From Mr. Tetsu Emori's newsletter]
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From the investment newsletter "Tetsuya Emori's Real Trading Strategy" by Tetsuya Emori, provided by GogoJungle, here is a small excerpt from this morning's distribution. This time, please take a look at the trading strategy for USD/JPY when its direction has become unclear.
USD/JPY is a hold. There is still no clear direction. Both upside and downside possibilities exist. It seems the dollar rose on the U.S. jobs data, but as far as USD/JPY is concerned, the move is not substantial. On the other hand, at the FOMC meeting on the 25th and 26th, a third rate hike this year is virtually certain. December is almost decided for a hike as well. If that is the case, the reason to buy dollars gradually diminishes. With the pound rising, the dollar is likely to weaken. However, emerging market currencies remain unstable. The tug-of-war will continue, and a directionless pattern is likely to persist.
Nevertheless, I think there is a possibility that the dollar will be sold from next week when U.S. stocks move from a correction toward a rebound again. If that happens, the global risk-off movement could reverse, the decline in emerging market currencies could stop, and as the yen, euro, and pound rise, the focus will shift to watching cross-yen movements.
From “Tetsuya Emori's Real Trading Strategy” (Tetsuya Emori) quotation.
USD/JPY, daily chart.
When you determine there is no opportunity to enter, it is important to be able to choose the option of “not trading” properly. We should be careful not to develop a habit of always being in a trade. (Editorial Department)
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