With nearly zero moves towards tightening monetary policy, Japan's currency stands almost no chance against the major pairs like GBP, USD, EUR, CAD and AUD. Here are some reasons and setups behind why shorting the yen could be beneficial in your trading.
If you were to look at the amount of accumulated debt in 2020, you would see an extremely high increase in the amount of debt Japan took on paired with their stagnant and somewhat dwindling GDP over the span of a year.
Japan also has a negative growth outlook GDP-wise. We are probably not going to see much improvement in the economy or in the currency in 2022. And even if Japan decides to switch gears at some point this year and tighten policy, the others have already had a head start. Interest rates are incredibly important in the world of forex, and the fact that other countries are taking that initiative before Japan is a big indicator for yen-shorters.
For more forex analysis on other pairs, click here.
Today's economic figures came out in US and Canada. GDP came in higher than expected in Canada while the price of goods purchased by consumers was lower than last month. Here are some pullback ideas for USD and CAD from GDP and PCE numbers. EdgeFinder Analysis NAS100 is a bullish reading on the EdgeFinder still. […]
This week has brought more inflation data with it regarding the USD's PCE and PMI numbers. Powell is also set to speak this Friday about monetary policy going forward. The RBNZ will also release their latest interest rate news tomorrow with expectations of an unchanged rate at 5.5%. EdgeFinder Analysis GBPUSD is a bullish bias […]
This week is a big PMI week for Europe, UK and US. Additional inflationary metrics will add to the overall sentiment of these countries' monetary policies going forward. Here are some setups for the coming week on these currencies. EdgeFinder Analysis GBPCAD is now a +7 on the EdgeFinder as we wait for CPI news […]
