November 30, 2018 08:27: Dollar/yen trade strategy [From Mr. Tetsu Emori's newsletter]
From the real trading strategy newsletter "Tetsu Emori's Real Trading Strategy" by Tetsu Emori, provided by GogoJungle, here is a small excerpt from this morning's dispatch. This time, please take a look at the trading strategy for the dollar/yen, which is currently trading with a mild bearish bias.
Dollar/yen is unwinding long positions. However, ahead of the weekend U.S.-China summit, if you don’t want to take on risk, it would be better to keep things square. In the short term, it feels overbought and a correction is needed. Against the backdrop of remarks by Fed Chair Powell and the FOMC minutes, the upside for the dollar is being capped, but I believe this is a market misread. If you only look at U.S. interest rate trends, rate cuts and dollar weakness come to mind, but exchange rates are not determined by the dollar alone. They are also influenced by other markets. Right now, risk-off conditions are prevalent, so the dollar tends to be bought relatively. Funds are also flowing into U.S. Treasuries. With high dollar demand, the dollar should be supported. On the other hand, if true risk-off materializes, the yen—where there are currently no major problems—will be more likely to be bought.
『Tetsu Emori's Real Trading Strategy』（Tetsu Emori）quoted.
With the G20 summit and U.S.-China summit approaching, a cautious mood is spreading and the dollar/yen is moving sideways. Market attention seems to be turning toward the U.S.-China summit already. (Editorial department)
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