Once again, JPY is correcting from its sharp rise as results of market jitteriness over the comments by none other than the Japanese Economic Minister Amari himself on the excessive Yen weakness…
And as you know, earlier on today Amari backtracked his comments and the market was all too happy to short the Yen again, doing the exact same thing I predicted in my Japanese Yen Strength - A Blessing In Disguise article. I hope you took advantage of this opportunity and went LONG on Yen crosses (…and followed my Forex Trading Strategy #6).
As a matter of fact, I believe after this lesson, Japanese officials are going to be more careful with what they say, and all indications are still pointing to further JPY weakness… But don’t take my words for it, here’s what Japanese politicians are saying:
I conclude that the current Japanese administration still supports further depreciating the Yen and will do whatever it takes to drive inflation back above 2%, even if it means changing the administration at BOJ. This is not only a powerful message, but the smoking gun that we need to hold on to our long-term positions. I believe we will see JPY resume its weakness and I wouldn’t be surprised to see USDJPY breaching the 100 level.
So if you are shorting the JPY, might as well hold on.
Here Comes The Yen Correction!
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