Mega Trade of the Month: The Yen Trade
Hello Traders,
It’s March already and while the Platinum’s team of Professional Analysts were wondering as to why the Yen had not stolen the limelight yet this year, the almighty Yen was getting itself ready to make us over a 1000 PIPs!
Kiwi made the mega move and the Euro trades started with BREXIT in January. Although February had several fundamental events such as the US NFP Payroll and US Fed Interest-Rate Decision, the Aussie 7777 trade took the spotlight along with several Euro trades producing consistent gains throughout the month.
It is time for the Yen to shine now.
Trading the Yen
One most know that the Yen is a very highly manipulated pair with irregular bouts of intervention.
Believe it or not, one of the most feared cross pairs for trading are the ones with Yen. I remember from my early days as an Interbank Dealer, the crosses such as GBP/JPY and EUR/JPY were known as ‘freight trains’. This when you had the ‘carry trades’ in play. A carry trade is a strategy in which an investor borrows money with a relatively low-interest rate in order to invest in an asset that is likely to provide a higher return.
The world of currencies is such a beautiful marketplace to make money on a consistent basis if you know what you are doing.
This year major Financial Institutions and Banks are predicting that the Yen will cross the 125 mark and beyond which is a remarkable 1000 PIPswaiting to be profited from.
At Platinum, we take only a few positions on the Yen in a year. However, we have been trading it with a success rate of over 80%.
Markets go up and markets go down! When you know how to trade them, it makes no difference whether we’re in an economic boom or economic catastrophe.
Always study the fundamentals first for any currency and then move on the technicals to give yourself a true edge to trading currencies with precision.
The Platinum Methodology to trade states the following:
- Recognise the Fundamentals first and not the technicals.
- From a technical perspective, recognise the behaviour of the Currency Pairs.
Fundamentals
The forecast for the Fed interest rate hike has gone from a 38% to a remarkable 90%. Yes, that is correct! We need to find low-risk Bull entries for this event. All the fundamentals over the last 6 months have been in line and show the market has already prepared for a market hike of 0.25%. Anything higher, which I very much doubt at this stage would be a big surprise and could result in a +500 PIP move on the Yen.
Markets move each day based on the Institutional Order Flow. Understanding how the Institutional Trading World works is the key to being a successful trader in the retail market rather than trying to second guess on the basis of a retail mindset it.
What we should learn is that always go with the fundamental flow for Longer-Term trades. This gives a higher probability of winning against the 5.7 Trillion Dollar Forex Market and an abundance of PIPs in your pocket.
Behaviour of the Currency Pair
A) Are we in a Bull trend?
Yes. We are currently in a Long-Term Bull trend since November 2016 i.e. the US Elections and we should be looking to take Bullish positions rather than Bearish positions to take technical advantage of the USD/JPY currency pair.
B) Are we in a Bear trend?
No. Only look for Short-Term trades with very low-risk rewards for bear entries or short entries.
C) Are we ranging?
Yes. In the intermediate term, we are trending in between 111.50 and 115.80 which is approximately a 430 pips range. This means that we should be looking to buy and sell at these levels, try and hold positions with 30 pips stop losses.
Important events for the Yen
Economy Watchers Sentiment: Wednesday, 5:00
This particular event is generally a low impact event when it comes to the Yen unless we have a major differential. We are not expecting a major change this month. Last month, we had a very small shortfall of 49.8 compared to the forecast of 51.9 points.
M2 Money Stock: Wednesday, 23:50
Watch out for this indicator. This can cause some spikes in the market. Look for dips to buy into on the release of this news. Platinum Analysts are predicting improvement in this month’s figures and are of the view we could beat the estimate of 4.2%
Average Cash Earnings: Thursday, 00:00
Average Cash Earnings is one of the most important fundamental economic reports that is correlated with consumer spending. December and January have been the inverse of positivity. Platinum Analysts are expecting the reports to come out in line with the forecast of 0.3%
Preliminary Machine Tool Orders: Thursday, 6:00
The Prelim report has posted two months of gains. Let’s see if it continues. This is a low impact report.
BSI Manufacturing Index: Thursday, 23:50
This is one report that has shown consistent gains month on month. The third quarter we hit 7.5 compared to the forecast of 3.4 and market analysts are expecting to be on target to hit at 8.4% for Q4.
The Chart
As usual, the Platinum chart says it all.
No need for time-consuming analysis of complex charts and candlesticks. The need for multiple indicators, learning the art of technical analysis and spending hours over multiple time frames in order to decipher entry points into the market is long gone. The Platinum Trading System’s Confluence Matrix algorithm studies 18 indicators and combines them with the Institutional Order flow. It provides a simple, effective and manageable user interface with a unique alert system that guides any trader with any level of experience to pick the perfect entry point consistently.
Platinum analysts suggest going for Longer-Term trades using the Platinum’s Long Term Forex Trading Strategy.
Trade Levels to watch: USD/JPY
LONG TERM TRADES:
A) Buy USD/JPY @ 111.50 or nearest zone with 40 pips stop loss and target of 115.80
B) Trade the trap zone with a 30 pip stop loss and an aim of 60 pips.
C) Trade all the minor levels with 20 pips stop losses and aim for 20 pips as a minimum.
Trading Long-Term can yield in the region of 5000 pips per year. It is a great strategy to use for part-time traders allowing for flexibility so can set and forget.
Perfect Fundamentals + Perfect Technical Analysis + Perfect Logic + Perfect Risk Management = A Perfect Trade
At Platinum, we teach all individuals from different walks of life to become a full-time trader or create a secondary revenue stream by trading part-time.
Two-Day Yen Trade Trial
This month, honoring the Yen, we are offering a two-day Yen Trade Trial. Please book your consultation with one of our Traders/Mentors to find out more.
After your consultation session, if you would like to, we shall do the following:
1. Set up the Platinum Trading System Trial and access to Platinum Trading Television for you.
2. Provide you with a Yen trade opportunity for your trial.
3. Initiate a Demo account so you can monitor your progress.
4. Assign you a Professional Trader/Mentor who will guide you in your progress during the trial period.
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Trade safe. No Revenge Trading.
Wishing you all the best.
Nisha Patel
Live from the Platinum Trading Floor.
Connect with me on LinkedIn.