DislikedIs there some kind of "fundamental AND technical logic" thread on the overall market? Because for the life of me i dont see how ppl thought jpy would be the sole beneficiary of a flight to safety (I know others know better but alot of ppl where speaking as if jpy was the ONLY safr haven) . Also no one factored in that yen has had much strength since the year began. I mean yen came back HARD on jan.!...did the mass market forget. by my logic it was unjustified strength that had to revert. Usd has been pummeled due to off numbers that I first hand...Ignored
Get a Financial Times subscription and read it every day, its pretty much the only way to start to 'get it'. It takes a few years, but once you understand what drives the markets you can start to make real money and not be obsessing over 1 minutes pin bar candles like most retail newbies.
The Yen is a safe haven because lots of people were short it January. When everyone is short, and risk aversion hits the market, traders begin to cover carry trades. A carry trade is when you borrow one currency and pay low interest on it, and buy another currency like EUR and receive a higher interest rate. This trade works great until excess volatility occurs, and everyone tries to get out. Check out the chart of AUDJPY in fall 2008 and you will see what I mean.
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