Trade The Yen & Make Lots Of Money
This month has started and we are in the season of Range which means the liquidity starts to dry up. It is now that we should try to trade the Yen and make good money!
As traders, we should know how to adjust according to different months.
Today I wanted to talk about the Japanese yen and how to trade the yen. If you are new to forex, do not worry please just send me a message at and I can show you how easy it is to trade currencies in a free 30 minute consultation.
When trading the pair USD/JPY, we have to take the fundamental situation of the currency into consideration first.
What is happening in the Japanese economy and what is the impact on the yen?
The yen has dropped almost 2000 Pips from the high of 125.47 to 105.48. This is a serious sell off and all the hard work and efforts have gone into weakening this currency via quantitative easing. When there is a high demand for this currency, it really impacts exports and inflation when a country is in full recovery mode.
Currently, the yen just keeps getting sold off and Mr Abe is not liking the situation. The last sell off on the yen was due to the delay rumour in sales tax hike from April 2017 to October 2019. Under normal circumstances, a delay in sales tax hike wouldn’t weaken a country’s currency but with Japan they are trying to get rid of their budged deficit. So while postponing an increase in consumption tax could actually allow domestic spending to stay strong for much longer, Abe’s leadership has been pushing
for a return to a primary surplus by 2020 or risk downgrades from credit rating agencies. These contradiction has given Mr. Abe a ton of headache. And that could be one of the reason why investors don’t trade the yen as they do not find it so much of a safe haven any more… at least for the time being.
In the month of May, we can see that both the yen and aussie have come down to lower levels and this could be because of the return of risk appetite. Just look at the Nikkei 225 index as that has been positive as of recent and is doing well due to the strong fundamental reports us retail sales and household spending. A direct impact is very low demand for the Japanese yen.
Platinum Trading Strategy to Learn How To Trade The Yen for 2016.
Platinum Triggers that will commence bearish trades or short selling. Short selling means betting that the currency will go down.
A) If there is no rate hike from the FED.
B) If we get 2 daily candle closes below 105.50
C) If we get worse than expected data from the US
Platinum Triggers that will commence bullish trades or buying
This means betting that the currency will go up
A) Japan Economic stimulus, rate cut or QE
B) Hawkish Fed and amazing US economic data
C) If we get two daily candle closes above 113.50
When someone first hears the words technical analysis, they tend to over think and start believing that trading is too difficult and time consuming. Believe me every single chart that you can see that I have published is very basic, just outlining how the trade is produced.
We have a belief here at Platinum that –
Perfect Trade = Perfect Fundamental + Perfect Technical Analysis + Perfect Logic + Perfect Risk management.
So with the above in mind, let’s talk about the piptastic opportunities that are coming to the Platinum Trading Floor in the month of June.
IMPORTANT LEVELS TO KEEP AN EYE ON FOR BUYS AND SELLS:
- 100.00 – INTERVENTION TRADE
- 100.76 – INTERVENTION TRADE
- 105.50 – INTERVENTION TRADE
- 110.80 – LONGER TERM SHORT SELL
- 111.20 – LONGER TERM SHORT SELL
- 113.50 – LONGER TERM SHORT SELL
- 116.80 – LONGER TERM SHORT SELL
All trades should have a stop loss no more than 40 fx Pips as stated on the chart. Intervention trades are levels that we monitor and we can have over a 300 Pips move in one day, so please learn buy and hold.
AT Platinum WE ARE WATCHING THE LEVEL OF 105.50 WITH GREAT INTEREST THIS COULD BE THE FIRST LEVEL WHERE BOJ COULD INTERVENE
BUY THE YEN @105.50 WITH A 40 PIPS STOP LOSS AND A TARGET OF 110.80 FOR A 500+ PIPS
AT Platinum WE ARE WATCHING THE LEVEL OF 100.76 WITH GREAT INTEREST. THIS COULD BE THE FIRST LEVEL WHERE BOJ COULD INTERVENE
BUY THE YEN @100.76 WITH A 40 PIPS STOP LOSS AND A TARGET OF 110.80 FOR A 1000+ PIPS
BOTH THESE TRADES COULD MAKE YOU SOME SERIOUS MONEY IF YOU CATCH THE INTERVENTION TRADES. FOR LIVE UPDATES ON THESE TRADES AND LEARN HOW TO TRADE THESE EVENTS LIVE WITH ONE OF OUR CONSULTANTS. PLEASE Book Your FREE Consultation TODAY!
The information you’ll find in this article is to educate you. We make no promise or guarantee of income or earnings. You have to do some work, use your best judgement and perform due diligence before using the information in this article. Your success is still up to you. Nothing in this article is intended to be professional, legal, financial and/or accounting advice. Always seek competent advice from professionals in these matters. If you break the city or other local laws, we will not be held liable for any damages you incur.
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The information you’ll find in this article is for educational purpose only. We make no promise or guarantee of income or earnings. You have to do some work, use your best judgement and perform due diligence before using the information in this article. Your success is still up to you. Nothing in this article is intended to be professional, legal, financial and/or accounting advice. Always seek competent advice from professionals in these matters. If you break the city or other local laws, we will not be held liable for any damages you incur.