Trump Administration and BoJ Policy Shake the Markets! +60,025 USD Achieved in a Week

Trump Administration and BoJ Policy Shake the Markets! +60,025 USD Achieved in a Week


2025/01/13–17 Trading Highlights

This week, significant profits were secured by focusing on Bitcoin, USD/JPY, and Gold. The markets responded strongly to the conclusion of the Biden administration, which provided reassurance, and the anticipation surrounding the inauguration of the Trump administration. Below, I’ll detail the key highlights and future outlook.


Weekly Highlights

  • Profit: +60,025 USD
  • Core Trades: Successful trades in Bitcoin buys, USD/JPY buys, and Gold buys.
  • Lesson Learned: The Bitcoin position could have been increased further, considering expectations for the new Trump administration, but I was overly cautious—something to reflect on.

The market quickly shifted to a risk-on mode following the end of the Biden administration on January 17, fueled by relief over the absence of a 1 trillion yen Bitcoin sell-off. Bitcoin prices surged to mid-100,000 USD levels, establishing a strong upward trend. I expect this momentum to continue next week.


Market Summary for January 13th Week

1. USD/JPY

  • Movement: Surged past 158 yen before plunging to the 155 yen range due to BoJ rate hike speculation.
  • Key Factors: Rising U.S. Treasury yields supported the dollar, while remarks from BoJ officials sparked yen buying.

2. Bitcoin

  • Movement: Rose to mid-100,000 USD levels amid relief over the Biden administration’s exit.
  • Key Points: Investor confidence returned as market concerns subsided, fueling renewed interest.

3. EUR/USD

  • Movement: Dropped to 1.0178 USD due to weak European economic data, with limited rebound potential.
  • Background: Ongoing recession concerns in Europe and sustained dollar strength.

4. Gold

  • Movement: Benefited from value-seeking buying, maintaining a steady upward trend.
  • Outlook: Further upside potential if the U.S. dollar weakens.

Key Focus for the Upcoming Week (January 20th Week)

1. Trump Administration Inauguration

  • Date: January 20
  • Expectations for tariff policies and economic stimulus measures are likely to drive significant market movements.

2. BoJ Monetary Policy Meeting

  • Date: January 22–23
  • A rate hike could trigger short-term yen appreciation, while no change might reignite yen depreciation trends.

3. European Economic Data

  • Key Releases: ZEW Economic Sentiment Survey and PMI Flash Estimates.
  • Further deterioration in European data could exacerbate downside risks for the euro.

4. Canadian CPI and U.S.-Canada Trade Tensions

  • Potential policy moves by the Trump administration could lead to significant movements in the Canadian dollar, warranting close attention.

Strategy Summary

USD/JPY

  • Consider temporary yen appreciation risks based on BoJ rate hike speculation. However, yen depreciation may resume depending on Trump administration policies.

EUR/USD

  • Maintain a bearish outlook amid deteriorating European economic indicators, with parity levels in sight.

Bitcoin

  • Continue to anticipate an upward trend, expanding buy positions. Optimism about regulatory easing under the Trump administration adds momentum.

Gold

  • Further upside potential is expected if the dollar undergoes a correction. Remain focused.

CAD and AUD

  • These currencies remain susceptible to external factors; adopt a flexible approach.

Key Events Next Week

  • January 20: Trump Administration Inauguration
  • January 21: UK Employment Data, German ZEW Sentiment Survey
  • January 22–23: BoJ Monetary Policy Meeting
  • January 24: PMI Flash Estimates for Various European Countries

Conclusion

As market volatility intensifies, a flexible and composed approach will be essential in the coming week. The primary focus remains on Bitcoin, USD/JPY, and Gold, with strategies geared toward maximizing profits while staying vigilant about key events.


P.S. As the Trump administration’s inauguration nears, Bitcoin is once again under the spotlight. Quick decision-making will be crucial to capitalize on short-term opportunities.


A Note on Relaxation

To unwind from the year-end and New Year fatigue, I’ve visited a thalassotherapy facility in Trouville-sur-Mer, Normandy, France.

Cures Marines Trouville Hotel Thalasso & Spa
(Website: https://www.lescuresmarines.com/fr/)

Thalassotherapy, derived from the Greek words “thalassa” (sea) and “therapeia” (treatment), is a natural therapy using marine resources like seawater, algae, and sea air. Popular across Europe, particularly in coastal regions like France, it offers numerous benefits:

  • Muscle relaxation and pain relief
  • Improved blood circulation and detoxification
  • Enhanced skin elasticity and hydration
  • Stress reduction, better sleep quality, and immune system support

If you plan to visit France, incorporating this experience into your itinerary could be a worthwhile addition. Highly recommended!

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