Does anyone else think that this rate rise will be a disappointment?If the BOJ makes a minimum adjustment and continues with its ultra -expansive rhetoric, there will be no reason for Yen to strengthen in a sustained way.
Does anyone else think that this rate rise will be a disappointment?If the BOJ makes a minimum adjustment and continues with its ultra -expansive rhetoric, there will be no reason for Yen to strengthen in a sustained way.
It is not only the decision of the BOJ that matters, but also the tone they use in their statement.If they say that it is only a technical adjustment and that there will be no more increases, the Yen could weaken instead of strengthening.
It is always funny to see how before an important news, everyone believes that it has the key to what is going to happen.Then the news comes out, the market moves in the opposite direction and the traders themselves seek explanations.This is Forex to its maximum expression.
For those who are going to operate this news: make sure that your broker does not expand the Spreads or limit the execution in moments of high volatility.I have seen traders lose fortunes for not reviewing the conditions of its broker before operating large news.
If the Boj really wants to strengthen Yen, it is not enough to raise rates.They need to make structural changes in the Japanese economy and reduce dependence on ultrabajas rates.Something that will not happen overnight.
Most likely, Yen makes a strong movement just after the announcement and then returns to the point where it began.If you operate this, you better take rapid profits before the market takes them off.
I do not understand why some believe that Yen has to strengthen himself with a raised rise.Look what happened with other currencies: sometimes rates go up and the currency is also depreciated because the market had already discounted everything before.
My strategy will be to wait for the initial reaction, measure volatility and then look for an entry with a better risk-benefit ratio.If the market moves too fast, I prefer to stay out.It is not worth risking too much in moments of uncertainty.
Whatever happens, there will be trading opportunities.You do not need to guess the exact address before the news.Just wait and let the market show you the best ticket.There is always money to earn if you are patient.
I am considering selling USD/JPy if the box is more aggressive than expected.But I don't want to hurry.Many times the best operation is what you decide not to take.
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