The yen has emerged as the best target for foreign exchange traders looking to take a position in anticipation of tapering by the US Federal Reserve.
The yen has fallen about 4% against the dollar in the last three weeks, the worst performance in the G10 currency. However, this may only be the starting point for a more significant depreciation of the yen, and there are increasing signs of that.
Currently, the yen is at a disadvantage in terms of both fundamentals and technical aspects.
Since Japan is one of the largest oil importers in the world, the energy crisis is not a favorable material for the bulls of the yen. Crude oil West Texas Intermediate (WTI) has risen by more than 30% in less than two months, and the downward pressure on the yen is only increasing.
According to the chart analysis, if the dollar / yen pair breaks through the important resistance line of 1 dollar = 114.55 yen, the rise may accelerate. Looking at the options indicators, bullish investments in the dollar dominate, and traders in London and Frankfurt have said that large hedge funds and real-money funds have just begun to take momentum.
(Bloomberg)
This week, we are trading with the dollar yen, euro yen and yen in consideration of this depreciation of the yen.
Personally, I think the yen will continue to depreciate, and I plan to continue to choose currency pairs by combining strong currencies and weak Japanese yen.
Currently, the power balance at 15 minutes is
NZD> AUD> CAD> GBP> CHF> EUR> USD> JPY
