Wednesday, May 29, 2013

Will Japanese Yen reverse soon

It obvious that Japanese Yen has been the biggest loser this year in Forex market. Can the trend continue till the end of the year or possibly even further? This is purely speculation, but I do not think that the trend will continue into next year. I bet the downward trend will continue through the summer of 2013 and we will see a reversal or bottoming process in Yen by the end of the year. Why?

It looks like market has already priced in most of the available fundamentals. We do know that Bank of Japan is stimulating economy and we know how much. If the economic numbers for Japan start getting better this will prove that their strategy works and Yen will finally reverse. If they do not intend to add more to their stimulus the same thing will happen: Yen will turn around. I am not buying Yen yet, as I do not see a bottom yet, but I am always on alert as I know that reversals can be very sharp and fast. And this, as you may understand present good opportunities. So, be watchful and do not start buying Yen too soon.