Type up in Japan

[camllloxumizvamela]

Hello everyone, I just wanted to know if it makes sense to operate GBP/usd (my favorite pair

[angusyok]

Hello, I do not think that a possible rise in rates of the Bank of Japan has a great impact on GBP/USD.You can find useful information about currency correlations here: http://www.mataf.net/en/analysis-correlation.htm Greetings.

[minemu]

Excellent link!Thank you!

[camllloxumizvamela]

The best link of all!Thank God for this forum.Thank you!

[xavi15673]

What pairs are planning to operate with this announcement?Will they stay with USD/JPY?I was thinking that if the rates do not upload, maybe it is worth buying Chf/JPy or GBP/JPy.But if they end the zero rates policy (ZIRP

[be93]

What is PPP?Quoting UBS has the purchasing power parity (PPP

[2222]

PPP means purchasing power parity.It is calculated by comparing the cost of a basket of equivalent goods in different countries.Basically, the JPY has been very weak compared to its theoretical value due to zero interest rates for so many years.If the ZIRP ends, the Yen should get closer to its PPP (although, obviously, there are other factors at stake

[camllloxumizvamela]

So, if I understand well, have the market already deducted the possibility of a raised rise in Japan?If the ZIRP ends, will we really see a sustained strengthening of YEN or just a short -term speculative movement?I worry that if I enter an operation waiting for a great fall in USD/JPY, I ended up getting caught in a false break.

[saama18]

Exactly, the market usually anticipates these movements, but the true reaction depends on the statement of the BOJ and the future expectations.It is not enough for rates to upload, investors want to know if this is the beginning of a bullish cycle or a specific adjustment.If only rates go up but maintain a moderate tone, Yen could strengthen a little and then weaken again.For a sustained movement, they would have to suggest more increases in the future, which I doubt they do.

[xx88pmegapkm88xx]

It has always seemed funny how people believe that a single announcement will change the trend of a pair like USD/JPY.The Yen has been a weak currency for years and a single rise in rates will not suddenly make everyone runs to buy it.If the BOJ does not change its monetary policy position in general, this will only be temporary noise.

[Omiok314]

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.

[funemamio200]

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.

[Campanwlas]

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.

[lxeoxnlico]

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.

[Ligay2386]

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.

[Ma88]

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.

[annamock03]

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.

[blakgek]

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.

[washu]

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.

[legombumu]

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.

[I]

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.

[samusfusiok]

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.

[alolgu]

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.

[Yoki85]

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.

[Oxgeles6]

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.

[nochox]

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.

[cvg22]

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.

[Paco]

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.

[Mm]

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.

[Polajes1]

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.