December 18, 2018 08:17: Dollar-Yen trade strategy [From Mr. Satoru Emori's newsletter]
From the investment newsletter Real Trading Strategy by Satoshi Emori, provided by GogoJungle, here is a small excerpt from this morning’s delivery. This time, please take a look at the USD/JPY trading strategy as it fell into the upper 112 yen range.
We will take a new short stance on USD/JPY. USD/JPY has faced resistance and turned lower against a backdrop of a stock market decline. It is a risk-off, yen-on movement. Since there is still a substantial downside, we will first test exactly 112 yen. If it breaks below this level, a fairly severe decline is expected. As has been pointed out, global stock prices have started to fall conspicuously. In particular, U.S. stocks, which had maintained highs up to now, have entered a bear market. This makes yen buying for risk avoidance easier. It is prudent to proceed with straightforward yen buying. On that basis, if USD/JPY breaks below 112 yen, further yen strength will follow, testing the long-term trend around 110.70 yen. If that also breaks, we will enter a genuine yen-strength cycle. If the Nikkei Average falls below 21,000 and clearly enters a downtrend, dollar-yen declines will become even more evident.
“Real Trading Strategy by Satoshi Emori” (Emori Satoshi)Quoted from.
Following remarks by President Trump, who has threatened additional rate hikes, the USD/JPY is falling. At today’s and tomorrow’s Federal Open Market Committee (FOMC) meeting, pay attention to the pace of future rate hikes and the economy’s assessment. (Editorial Department)
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