Japanese Yen Plummets on Forex Charts
Japan's recent economic troubles have continued weigh heavily on the minds of investors, especially where the country's brand new dependence on oil is concerned. There is little doubt as whether or not Japan will recover, it is just a question of when, and for now the answer seems to be €no time soon.€ There are just too many blows to the economy of this fragile nation as of late to be ignored, and as production and sales slow for the country so too does the hopeful attitudes of many investors. The Japanese Yen dropping on Forex Charts has usually been seen as a good thing, but given the current climate some are slightly concerned. While there are certainly some alarmists many will be happy to see the prices of their favorite Japanese products drop, especially considering recent price hikes due to inflation.
There are some great buy opportunities for the Yen this week, but there are going to have to be some very liberal stops in play to prevent being pulled out of the trade too quickly. There is a lot of potential for some money to be made, but only if those who are trading take the time to keep up with what is going on. This is not a pair to jump into right now, with a more than 60 day channel being broken it is important to go ahead and either stand back or be ready for a ride. This is most definitely a long term opportunity, and over the next week's worth of trading this pair might just rise another 100 pips.
Be warned however that Monday could bring a serious bout of reconciliation as the market may retract a bit after last week's move, so be prepared. This is one of those huge risk reward scenarios, and it should be treated as such as opposed to something that is a near sure bet. This is not going to be an easy trade for the beginner, so if you are not sure of where to take profits in a trade like this then stay away from it. There is only so far profits can run before you have to cut your losses short, and taking this into account will prevent the loss of a lot of money. There must be some serious analysis going on here in both a technical and fundamental analysis done here before trading this pair on Forex.
There are some great buy opportunities for the Yen this week, but there are going to have to be some very liberal stops in play to prevent being pulled out of the trade too quickly. There is a lot of potential for some money to be made, but only if those who are trading take the time to keep up with what is going on. This is not a pair to jump into right now, with a more than 60 day channel being broken it is important to go ahead and either stand back or be ready for a ride. This is most definitely a long term opportunity, and over the next week's worth of trading this pair might just rise another 100 pips.
Be warned however that Monday could bring a serious bout of reconciliation as the market may retract a bit after last week's move, so be prepared. This is one of those huge risk reward scenarios, and it should be treated as such as opposed to something that is a near sure bet. This is not going to be an easy trade for the beginner, so if you are not sure of where to take profits in a trade like this then stay away from it. There is only so far profits can run before you have to cut your losses short, and taking this into account will prevent the loss of a lot of money. There must be some serious analysis going on here in both a technical and fundamental analysis done here before trading this pair on Forex.