Learn, a forex trader must, unlearn and relearn he will.
-
JPY: Why the yen’s at a crossroads
Despite all the concerns of an escalating trade war, the world’s favourite safe haven currency – the Japanese Yen (JPY) – is drifting towards its lowest levels of the year against the US dollar (USD). The rise in USD/JPY over 111 probably owes to firm US yields at a time when US equities are remaining bid. Here the US$1.5trn in US tax cuts have likely delivered insulation for US equity markets. Typically a flattening in the US Treasury curve has proved bullish for USD/JPY. Here, the typically held view is that the relative rise in short-end US rates relative to the long end makes dollar hedging costs ... (full story)