My thoughts on the USDJPY and what I'm thinking about

U.S. Dollar / Japanese Yen (FX:USDJPY)

FX:USDJPY U.S. Dollar / Japanese Yen

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trendanalysis beyondta usdjpy dollar yen

I don't think many people saw this coming. The USDJPY has been trending down and continues to trend down. Obviously the biggest part of this trade is the carry trade and that ultimately drives the trading pair. Nonetheless, look at the downtrend on a longer term timeframe and the lows from 2012. Would it be so crazy that the Dollar continues to depreciate to those levels vs. the Yen? I am thinking through this and watching closely.

As an equities trader in the US, I am mostly curious in what the side effects are of a stronger Yen and a weaker Dollar. Please leave your comments if you know. I will have to look at what the S&P 500 was doing in 2011/2012 when the Dollar was crashing compared to the Yen.

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Comments

If the markets are going up, then US$ will probably fall, and if the markets tank, then the dollar will go up, and everything else will go south (margin calls & dollar shortage)

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