peculations on BoE that might begin scaling back its sizeable quantitative easing program caused a short term bullish JPY rally. However, considering the following facts, we believe the effects of this will be limited.
Facts:
Japanese Yen lost its safe haven asset position. Dollar replaced JPY, CHF and Gold as a safe haven asset. The gap between the two currencies interest rates makes USD much stronger against Yen.
Technically:
110.800 – 111.100 region is a major support. USDJPY tested this support but failed the break below. EMA 200 – H4 Chart – support located at 111.000.
Anka is trading at 111.370 as of writing. 111.600 and 111.800 are the next targets of the pair.
Trading can be called a profession when carried out based on specific rules. Taking a trading position based on impulsive decisions is gambling, and the results might be dramatic.
A professional trader sets out an equity management plan according to the three variables: his own temperament, equity and time.
Losing trades is the costs of doing business. If a trader doesn’t keep costs down, he’ll go out of business. Therefore, only “buy” bargain trades, with a minimum of 1:2,5 risk-reward ratio, based on the trades’ outlook. If not, wait for it. You don’t make money for entering trades, only when you profit. A favorable risk-reward ratio provides you with an overall statistical advantage.
DISCLAIMER: This is a technical analysis study, not an advice or recommendation to invest money