Japanese Yen Maintains Bullish Trend as Long as Fears Persist

fxcapitalvia

Trader
Jan 13, 2014
15
0
12
The Japanese Yen made a big lurch forward on compounding fears of slowing growth and emerging market crisis.
- A further deterioration in investor sentiment will help the Yen breakout of its recent triangles.
- Have a bearish (or bullish) bias on the Yen, but don’t know which pair to use? Use a Yen currency basket.
The Japanese Yen finished the week as the second best performer as evidence mounted that market participants have started to engage a more negative outlook into the near horizon. Emerging market troubles mounted for a second week, although after several desperate measures by central banks across the frontline developing world (Central and Southeast Asia, parts of Africa and Latin America), the Yen’s gains were focused elsewhere.
Throughout January, emerging market currencies like the Argentinian Peso, Russian Ruble, and South African Rand were getting punished by investors as the process of the Federal Reserve winding down QE3 started to provoke a more concerted reversal of “hot money” flows. With no major Japanese data on the calendar this week, our main focus will be on the continued unwind of these hot money flows. Capital flight bodes well for the Yen as the month of January proved.
 

Rambo35

Confirmed PaxForex Representative
Apr 22, 2013
909
24
32
Canada
I will recommend it USDJPY at 103.50