DislikedIs it just me but I've been noticing lately a strong contrarian pattern with this pair. A recent example is today's negative trade balance numbers from Japan. Should it not have sent the USD up? Instead the pair went down. (My bet though is that it will do so eventually later.)Ignored
Poor economic data means more central bank intervention, more central bank intervention means more cheap money, more cheap money means more want for that currency. More want for a currency is because of cheap money. But of course its a balancing act, as the currency becomes more valuable the money isnt as cheap.
With all that said, FED rate increases, long term deflation in Japan, negative interest rates and continued money printing all equal a strong JPY. Their a tonne of other factors to consider also, but these are just a few highlights. Yes the BOJ decreased money printing last week but Im sure they will re-evaluate that.
Also consider, Japan investors and BOJ dumping US bonds like crazy
Trump increased Tariffs on China, will surely overflow to the US
We haven't even gotten into the technical's.
Learn, a forex trader must, unlearn and relearn he will.
1
