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Buying Yen
Buying Yen or selling the currency during these chaotic times in Japan has profit potential. Fundamental analysis of the return of Japanese offshore assets to the home island is important to Forex profits in buying Yen and selling Yen. As always, close technical analysis of the Forex markets with Candlestick chart analysis can give traders the advantage they need to be successful in buying Yen, as well as any other foreign currency.
Buying Yen these days requires both a lot of homework regarding how much damage was done to the Japanese economy by the recent earthquake and tsunami. It also requires a sense of just much in Japanese assets have been parked offshore for years taking advantage of high interest rates while Japan has languished in nearly deflated economy with very low interest rates. Now, when there is a need for money at home to deal with the historic damage from the earthquake Japanese investors, insurance companies, banks, and others have been divesting themselves of offshore assets and using the foreign exchange market to convert the proceeds into Yen.
The resulting rush to buy Yen drove the price of the Japanese currency up so much that the G7 ministers and several central banks threatened intervention in a successful effort to stop the Yen from rising further. Once the bulk of needed funds have been moved back to Japan we can speculate that the Yen may become somewhat volatile again.
Will the Japanese Yen become more volatile due to the stresses on the Japanese economy? News sources say that half of Japan’s industrial and manufacturing base is in the Tokyo Electric Power Company grid. This is the company with the nuclear power plant whose backup generators were washed away by the tsunami. There is a threat of rolling blackouts when summer arrives and air conditioners are turned on. If Japanese exports suffer so might the Yen in Forex trading. Successful Forex strategies for selling or buying Yen may involve options trading. Certainly, Japanese companies involved in doing business oversees, and their clients, will be engaged in hedging in order to reduce currency risk.
Following the fundamentals that affect the value of the Yen is useful in buying Yen. However, as every technical trader knows in trading Forex, as well as stocks, commodities, and futures, the fundamentals are very quickly discounted by the Forex market. It is in the ability to assess market sentiment through Candlestick analysis that many traders prosper whether in buying Yen or Forex trading any of the major or minor foreign currencies. Candlestick traders use time tested trading signals in order to successfully anticipate market reversal, the next market rally, and the next price direction during times of high market volatility. It is not that technical Forex traders ignore the fundamentals of the drives the USD/JPY pair, for example.
2. Buying Yen or selling the currency during
these chaotic times in Japan has profit
potential.
www.CandlestickForums.com
3. Fundamental analysis of the return of
Japanese offshore assets to the home
island is important to Forex profits in
buying Yen and selling Yen.
www.CandlestickForums.com
4. As always, close technical analysis of the
Forex markets with Candlestick chart
analysis can give traders the advantage
they need to be successful in buying
Yen, as well as any other foreign
currency.
www.CandlestickForums.com
5. Buying Yen these days requires both a
lot of homework regarding how much
damage was done to the Japanese
economy by the recent earthquake and
tsunami.
www.CandlestickForums.com
6. It also requires a sense of just much in
Japanese assets have been parked
offshore for years taking advantage of
high interest rates while Japan has
languished in nearly deflated economy
with very low interest rates.
www.CandlestickForums.com
7. Now, when there is a need for money at
home to deal with the historic damage
from the earthquake Japanese investors,
insurance companies, banks, and others
have been divesting themselves of
offshore assets and using the foreign
exchange market to convert the
proceeds into Yen.
www.CandlestickForums.com
8. The resulting rush to buy Yen drove the
price of the Japanese currency up so
much that the G7 ministers and several
central banks threatened intervention in
a successful effort to stop the Yen from
rising further.
www.CandlestickForums.com
9. Once the bulk of needed funds have
been moved back to Japan we can
speculate that the Yen may become
somewhat volatile again.
www.CandlestickForums.com
10. Will the Japanese Yen become more
volatile due to the stresses on the
Japanese economy?
www.CandlestickForums.com
11. News sources say that half of Japan’s
industrial and manufacturing base is in
the Tokyo Electric Power Company grid.
www.CandlestickForums.com
12. This is the company with the nuclear
power plant whose backup generators
were washed away by the tsunami.
www.CandlestickForums.com
13. There is a threat of rolling blackouts
when summer arrives and air
conditioners are turned on.
www.CandlestickForums.com
14. If Japanese exports suffer so might the
Yen in Forex trading. Successful Forex
strategies for selling or buying Yen may
involve options trading.
www.CandlestickForums.com
15. Certainly, Japanese companies involved
in doing business oversees, and their
clients, will be engaged in hedging in
order to reduce currency risk.
www.CandlestickForums.com
16. Following the fundamentals that affect
the value of the Yen is useful in buying
Yen.
www.CandlestickForums.com
17. However, as every technical trader
knows in trading Forex, as well as
stocks, commodities, and futures, the
fundamentals are very quickly
discounted by the Forex market.
www.CandlestickForums.com
18. It is in the ability to assess market
sentiment through Candlestick analysis
that many traders prosper whether in
buying Yen or Forex trading any of the
major or minor foreign currencies.
www.CandlestickForums.com
19. Candlestick traders use time tested
trading signals in order to successfully
anticipate market reversal, the next
market rally, and the next price direction
during times of high market volatility.
www.CandlestickForums.com
20. It is not that technical Forex traders
ignore the fundamentals of the drives
the USD/JPY pair, for example.
www.CandlestickForums.com
21. It is that the technical trader knows that
by the time he knows a piece of new
information so does everyone else in
this electronically driven world.
www.CandlestickForums.com
22. It is reading market sentiment with
Candlestick pattern formations that the
Candlestick trader can correctly
anticipate market reaction to the news
of the day.
www.CandlestickForums.com
