http://www.forexconspiracyreport.com/trading-the-yen/
Trading The Yen
Trading the Yen has for years simply been a matter of buying Yen with dollars, waiting a bit for the dollar to fall and then buying back dollars for a profit. Trading the Yen may not be that way anymore. An interesting article in the online Wall Street Journal notes that the dollar rises against the yen as well as the euro as economic recovery proceeds in the USA while it falters in Japan and the EU.
The dollar gained against the yen and euro as economic and policy news abroad underscored a divergence between recovery in the U.S. and struggles in Japan and the eurozone. The dollar rose 0.3% against the yen to ¥116.56, near its highest level in more than seven years. The euro fell 0.6% versus the dollar to $1.2451, hovering near its weakest level since August 2012. Japan’s economy slipped into recession in the third quarter. Its gross domestic product contracted an annualized 1.6% in the three months ended Sept. 30, far short of economists’ forecasts for a 2.25% expansion.
In trading the Yen it appears that for the time being it is not simply a matter of buying the currency and waiting for the dollar to weaken. But Japan has not given up either. The most recent recession in Japan came on the heels of a sales tax. Prime Minister Abe is going to delay a scheduled increase in the tax which will at least keep the recession from getting worse.
Good Times in the USA
The USA has recently seen longest period of sustained job growth since the days following the Second World War. The oil and natural gas fracking boom has reduced the cost of home heating and driving your car. There will be more money in everyone’s pocket this coming holiday season and the economic recovery is likely to continue. So, it is not just a matter of troubles in Japan that drive down the Yen. Rather a strong US economy is important as well in trading the Yen. And remember that Forex markets were set up to foster world trade. How will the Japanese recession affect the USA? According to an article in USA Today it will not do so directly but concerns about a global economic slowdown are of concern to the greenback.
Japan’s unexpected slide back into recession is likely to have little impact on U.S. economic growth but adds to worries about the slowing global economy, analysts say. Just 4.1% of U.S. exports go to Japan and those account for 1% of U.S. gross domestic product, according to the Office of the U.S. Trade Representative and IHS Global Insight. Also, the falling value of the yen against the dollar, which makes Japanese imports less expensive in the U.S., is a plus for consumers.
Because one trades the Yen against the dollar there is no profit to be made if they strengthen or weaken together. Trading the Yen against any other currency is only profitable if the two diverge in strength.
2. Trading the Yen has for years simply
been a matter of buying Yen with
dollars, waiting a bit for the dollar to
fall and then buying back dollars for a
profit.
http://www.forexconspiracyreport.com/trading-the-yen/
3. Trading the Yen may not be that way
anymore.
http://www.forexconspiracyreport.com/trading-the-yen/
4. Before We Continue…
Click the links below to get your
FREE training materials.
Free Weekly Investing Webinars
Don’t miss these free training events!
http://www.profitableinvestingtips.com/free-webinar
Forex Conspiracy Report
Read every word of this report!
http://www.forexconspiracyreport.com
Get 12 Free Japanese Candlestick Videos
Includes training for all 12 major candlestick signals.
http://www.candlestickforums.com
http://www.forexconspiracyreport.com/trading-the-yen/
5. An interesting article in the online Wall
Street Journal notes that the dollar
rises against the yen as well as the
euro as economic recovery proceeds
in the USA while it falters in Japan and
the EU.
http://www.forexconspiracyreport.com/trading-the-yen/
6. The dollar gained against the yen and
euro as economic and policy news
abroad underscored a divergence
between recovery in the U.S. and
struggles in Japan and the eurozone.
http://www.forexconspiracyreport.com/trading-the-yen/
7. The dollar rose 0.3% against the yen
to ¥116.56, near its highest level in
more than seven years.
http://www.forexconspiracyreport.com/trading-the-yen/
8. The euro fell 0.6% versus the dollar to
$1.2451, hovering near its weakest
level since August 2012.
http://www.forexconspiracyreport.com/trading-the-yen/
9. Japan’s economy slipped into
recession in the third quarter.
http://www.forexconspiracyreport.com/trading-the-yen/
10. Its gross domestic product contracted
an annualized 1.6% in the three
months ended Sept. 30, far short of
economists’ forecasts for a 2.25%
expansion.
http://www.forexconspiracyreport.com/trading-the-yen/
11. In trading the Yen it appears that for
the time being it is not simply a matter
of buying the currency and waiting for
the dollar to weaken.
http://www.forexconspiracyreport.com/trading-the-yen/
12. But Japan has not given up either.
The most recent recession in Japan
came on the heels of a sales tax.
http://www.forexconspiracyreport.com/trading-the-yen/
13. Prime Minister Abe is going to delay a
scheduled increase in the tax which
will at least keep the recession from
getting worse.
http://www.forexconspiracyreport.com/trading-the-yen/
14. Good Times in the USA
http://www.forexconspiracyreport.com/trading-the-yen/
15. The USA has recently seen longest
period of sustained job growth since
the days following the Second World
War.
http://www.forexconspiracyreport.com/trading-the-yen/
16. The oil and natural gas fracking boom
has reduced the cost of home heating
and driving your car.
http://www.forexconspiracyreport.com/trading-the-yen/
17. There will be more money in
everyone’s pocket this coming holiday
season and the economic recovery is
likely to continue.
http://www.forexconspiracyreport.com/trading-the-yen/
18. So, it is not just a matter of troubles in
Japan that drive down the Yen.
http://www.forexconspiracyreport.com/trading-the-yen/
19. Rather a strong US economy is
important as well in trading the Yen.
http://www.forexconspiracyreport.com/trading-the-yen/
20. And remember that Forex markets
were set up to foster world trade.
http://www.forexconspiracyreport.com/trading-the-yen/
21. How will the Japanese recession
affect the USA?
http://www.forexconspiracyreport.com/trading-the-yen/
22. According to an article in USA Today it
will not do so directly but concerns
about a global economic slowdown
are of concern to the greenback.
http://www.forexconspiracyreport.com/trading-the-yen/
23. Japan’s unexpected slide back into
recession is likely to have little impact
on U.S. economic growth but adds to
worries about the slowing global
economy, analysts say.
http://www.forexconspiracyreport.com/trading-the-yen/
24. Just 4.1% of U.S. exports go to Japan
and those account for 1% of U.S.
gross domestic product, according to
the Office of the U.S. Trade
Representative and IHS Global
Insight.
http://www.forexconspiracyreport.com/trading-the-yen/
25. Also, the falling value of the yen
against the dollar, which makes
Japanese imports less expensive in
the U.S., is a plus for consumers.
http://www.forexconspiracyreport.com/trading-the-yen/
26. Because one trades the Yen against
the dollar there is no profit to be made
if they strengthen or weaken together.
http://www.forexconspiracyreport.com/trading-the-yen/
27. Trading the Yen against any other
currency is only profitable if the two
diverge in strength.
http://www.forexconspiracyreport.com/trading-the-yen/
28. The strongest factor in this equation is
the fact that the US is a major oil
producer as well as consumer and
Japan is simply an oil consumer.
http://www.forexconspiracyreport.com/trading-the-yen/
29. In fact, Japan may soon be receiving
oil and natural gas from the USA by
way of the enlarged Panama Canal.
http://www.forexconspiracyreport.com/trading-the-yen/
30. In the meantime, technical analysis
of Forex currencies is probably the
best bet for making a profit trading the
Yen.
http://www.forexconspiracyreport.com/trading-the-yen/
