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.
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