Friday, April 14, 2006

Yen nose-dive

I checked the value of the Yen yesterday and noticed that it had nose-dived to 118.67 against the dollar. Unfortunately, I have been away from my computer for the past three days and have been unable to enter any positions. Fortunately, I still have no losses and my only open position is short at 117.37 looking for a profit at 117.22. I believe that the Yen will climb again over the next little while as the Bank of Japan eases it's policy and the hikes in the price of oil take their toll on the greenback. I'm hoping that it will climb as high as 115.00 to the dollar which will confirm my "fundamental" analysis of the situation. I don't really trade fundamentals (which is why my system will not care whether or not this move happens) but I would like to make sure I understand how the perception of the value of the currency is affecting trading. Watch for the climb in value of the Yen. All in all, this has been a good week even though it was slightly unproductive - I had no losses for the third week in a row.

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