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Usdjpybuy

USDJPY NASDAQ100 The correlation between American Indices and the US Dollar is so powerful that some investors see Dow Jones Industrial as a USD market sentiment indicator. That relationship can be explained, and here is how. Explanation: When investors want to buy US stocks they tend to borrow money in low-interest rate currencies, such is the Japanese Yen. The Japanese Yen and the Swiss Franc are perfect for that job. So let's see closer an example of this transaction: (1) The investors feel bullish about the market so they borrow money in order to buy stocks. They borrow money in Japanese Yen, as Yen offers traditionally very low-interest rates. After they borrow in Yen they change that money to US Dollars in order to buy US stocks. Therefore, they buy US Dollars today and repay that money in Japanese Yen in the future. That transaction is pushing USDJPY higher. (2) The investors now feel bearish about the market so they want to sell stocks. They are selling the stocks they bought before in US Dollars and pay back the money they have borrowed in Japanese Yen. Therefore, they exchange US Dollars to pay back Yen. That transaction is pushing USDJPY lower. Note that as financial arbitrage gets involved, the above process is accelerated and happens very quickly. Hence, arbitrage creates a direct correlation between USDJPY and American stock
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by Sbo_Dhlamini
5
Possible lateral strategy on USDJPY#USDJPY two trades for the next week. The price may end its bearish movement around 107.92 Area where a big bullish movement started on the 7th of Jan. Anyway... it's possible a little retracement before this. So 109.019 could be a very good level to short. It doesn't matter which one first. Both are good levels to trade once. 1st Trade BUY Entry point 107.930: it's the same level of a previous big impulse (7th of January) and 100% of Fibo SL 107.640 TP 108.560 2nd Trade SELL Entry Point: 109.00 SL 109.165 TP 108.840 (R:R 1:1) but you can set a wider TP if the price hasn't reached 107.94 area before.
by kitchen_trading