September 28, 2018 08:00: Dollar/Yen trade strategy [from Mr. Tetsu Emori's newsletter]
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From the investment newsletter “Real Trading Strategy of Tetsu Emori” by Tetsu Emori, provided by GogoJungle, here is a small excerpt from this morning’s delivery. This time, please take a look at the trading strategy for USD/JPY, which has been hovering in the mid-113 yen range.
We will skip USD/JPY for now. It fell after the previous day’s FOMC, but today it reversed, surpassing the 113.16 level that we did not expect to break, and rose to 113.46. The apparent relief in the US-J Japan trade negotiations seems to have been a positive factor, but even so, the strength is notable. The expectation that US rate hikes will continue for the time being also supports dollar buying. That said, the path of US rate hikes is becoming clearer. On the other hand, Japan is about to exit from easing measures. From a material standpoint, there is overwhelming risk of yen appreciation. The market has not priced this in at all yet. It is prudent to ride the current market trend for now, but at the same time, we should understand from this point that, in the end, a move toward yen appreciation is unavoidable.
‘Real Trading Strategy of Tetsu Emori’ (Tetsu Emori) quoted.
Recently, the strength of the dollar has been conspicuous. The USD/JPY seems undeniably strong, but how far will this dollar strength go in the future? (Editorial staff)
USD/JPY, 1-hour chart.
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