EURJPY: Simple Trade Plans Update

Jun 27

Alike various JPY pairs, the lack of demand for the yen has caused it to weaken significantly over time.

This is because rates remain high across the board in other major economies. There is therefore, little reason to buy Yens when you have the opportunity to invest in currencies with a higher rate of return.

The only thing, realistically, that would bring down JPY pairs is a fast cycle of hiking from the BOJ OR Intervention. Traders already know lots of major economies are looking to ease (Canada, Eurozone, GB).

The BOJ is concerned mostly with the rate of decline/weakness, not necessarily the overall price at this point. Rising above the previous high this quickly may become concerning.

This warrants light shorts, with concise risk management. Buying now, at extreme highs, is never wise.

Jul 17

Note

Full video update: