When tensions on TRADE WAR looms in the market again especially with China; the Japanese #YEN's flight to safe haven never misses the ACTION. It's been one roller coaster ride too many. Never miss a heart beat even with the slightest market recovery near the 107.00 last week was not sustained. Especially with US equities like the #DOW in triple digit decline.
The market's ability to whipsaw these prices is actually getting a bit tiresome for others we have spoken to who can't keep up with the price swing in both directions. Choppy as they say, but quite favorable for day traders scalping in between trades.
The USDJPY is back at 105.33 which is another step down follow through from its recent high and retesting the lows especially when its going to be a short trading week ahead. Just be aware that sudden unexpected pullbacks on these sessions can occur at any given time due to the nature of volatility in the market especially whenever it's thinly traded. As the upcoming Good Friday is just around the corner likewise the end of the 1st quarter trading 2018.
Market Update As of March 23, 2018:
TSOT - Strategic Sequence of YEN Related Trades
Market Update As of March 23, 2018:
TSOT - Strategic Sequence of YEN Related Trades
The futures long 6JYM8 (June contract month) has maintained its pace heading North of the chart. Which is obviously an INVERSE of the SPOT FX USDJPY described in both charts and has formed the same market sentiment of increasing VALUE.
Then again, an advantage for ASIAN - PH Overseas Filipino Workers in Japan have been following our market sentiments on the relative value of the JPY with is strength as against the depreciating PH Peso. The exchange rate has been to their advantage as the weakness of the PHP provides greater value for their remittances.
This way investments and savings made are favorable for their families which would continue to do so until a reversal is identified, but this may take sometime to occur. This is how MegaTrade101 encourages PH OFWs in Japan to keep track of and gain the knowledge and the monetary benefits by knowing and planning their finances through this simple process similar to a foreign exchange dealer / remittance center. This way they do not have to trade the FX market the same way that we do.
As a matter of comparison, the charts above best describes the correlation between the USD JPY & PHP which can be used to gain from understanding and applying simple finance / money management.
ReplyDeleteTraders take note, that the advantage of trading the Yen futures has its merits as it has been steadily taking its pace ahead of the Spot FX as it gains ground in value. Time flexibility in trading the different time zones in three major markets is indeed an edge when done right in the first place.
ReplyDeleteEarly Asian and European session saw the USDJPY with a low marked at 104.65. Price pullback is expected but limited as initially breaking the 105.50 levels signifies a stronger demand is being made building up to futures and currency options for the Japanese Yen.
ReplyDeleteAs Spot USDJPY may find a market squeeze for speculative short-sellers that can be triggered with a thinly traded market nearing the end of the month and Good Friday. However, investors are more inclined to take on CABLE with renewed confidence from UK BREXIT deals.