Thread: Type up in Japan

It depends on how the market reacts to the news.Sometimes, even if the BOJ does what everyone expects, traders take profits and the price ends up moving in the opposite direction.The best thing in these cases is to wait for the first reaction and operate later.Trying to guess the movement ahead of time is a risky bet.

If you operate by fundamentals, you will realize that Yen has been oversized for a long time.If the BOJ really ends with the ZIRP, capital flows to Japan could increase significantly.But if you see it from the technical analysis, there are many resistances in USD/JPY that could make a sustained fall difficult.You always have to consider both factors before making a decision.

Forget the fundamentals, the only thing that matters is the price action.If the trend is still up to USD/JPY, why risk selling only because a news sounds "important"?Let it react and operate what you see, not what you think.

I think the big problem is that people underestimate the impact of Fed's monetary policy on YEN.Even if the Boj rises rates, if the Fed maintains its aggressive posture, the dollar will remain more attractive and USD/JPY could continue to rise.You have to see the complete panorama.

I am seeing many traders excited about this possible rise in rates, but did you already realize that Japan has been decades with ultra -expansive policies?Changing this is not so simple.A single announcement will not make Yen recover the strength he lost in the last 20 years.

If you want to operate this news, have a plan.Do not enter impulsively in an operation just because you see a large candle moving quickly.Initial movements can be traps for emotional traps.Wait confirmation before compromising your capital.

I don't know, but I prefer to operate with pairs that have a clear trend.If USD/JPY enters an extreme volatility phase after the ad, I will stay out until the dust settles.I am not interested in betting on unpredictable movements.

If the Boj goes up and yen strengthens, it will be interesting to see what happens to the JPY crosses.EUR/JPY and GBP/JPY could offer better opportunities than USD/JPY, especially if the dollar is still strong on its own.

It is curious how the market can react illogically.The rates may rise and, instead of strengthening Yen, investors end up selling it for some unexpected reason.That is why I never operate based on "what should happen."I prefer to wait and see what the price does before getting into trouble.

Remember that Yen is a shelter currency.If the BOJ changes its rate policy, capital flows could also change to other safe assets.We could see an impact on gold, government bonds and even stock indices.It is worth observing beyond the currency market.