YEN Gains As TRADE WAR Linger On

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 

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.

USD & EQUITIES On the HOT SEAT - US Investors Stays while others Shift Gears

Forex Market finally getting some Boost!

The USD - DXY continued weakness contrary to its short-lived, relief recovery posted last Jan 02 have given the EURO a pronounced rally currently near the 1.2150 levels as reflected on the chart below. This move have been a threat for European equities, as quite a number of US equity investors shifted towards Europe including some Asian emerging market stocks. 

EURO as of Jan 12, 2018 Fig A

With a full blown record levels for the US major indices, they have proven to be more resilient in spite of the recent declines which started on the Equity Futures market at the start of the week. And met a considerable rally where the DOW would open higher above 25600 levels. Whisper numbers  of 30k is in the air, as traders are quietly aiming the probability how remote that this would even happen soon or whenever. The same is true for the #SP500 3k and the #NASDAQ along side the #RUSSELL 2000 gaining ground from the past week.

Moving forward, we still expect these markets to stay well within our time frame before any major changes occur. A blow by blow market report would not be necessary as most of our trade positions in the DDM and UDN ETFs are in place from a carry over from 2017 and be able to ride on this 'Reinforced Market Trend' the best way possible.

While on the spot currency front other than the EURUSD, Commodity currency such as the AUDUSD has always been our choice in Asia compared with the USDJPY since it has been confined well within its range especially with the twist made by the BOJ on its monetary policy that saw an acceleration of the YEN back below the 112.00 aiming at the 110.00 levels in the mid term trade outlook.