The Yen, one of my favorite currencies to trade has not changed a bit. I keep hearing traders arguing why trading the Japanese Yen is a bad idea due to the disaster stricken country, I have to disagree. Since I first started to trade Forex I have always been intrigued by the Japanese Yen due to its volatility and just the way it moves in day to day trading. As many of you know my favorite pair to trade has been the GBP/JPY due to its massive daily movement. Not only this but the fact that the Pound and Yen are part of this pair and belong to some of the world's biggest economies and are two of the main trading hubs in the world.
Given the fact that the Japanese Yen is the currency of the third largest economy in the world, is reason enough to keep looking into it and not abandon it at this small point of weakness. Every currency will go through weakness, and right now looking at the big three currencies, the Yen, the Dollar, and the Pound they are all at a point of weakness. This does not mean that they have gone downhill just hit a snag and slowed down. Forex is about adapting to changes in the market, going long or short I still believe the big three are still the big three.
I have read a multitude of articles across many well-known news sites such as CNBC, Reuters, Bloomberg, etc all showing the weakness of the Yen and how it is destined to fail. But one needs to look closer and Japan and stop paying attention to all the superficial information on the news. The only real issue in Japan is the nuclear reactor and every day that goes by the engineers in charge of closing the reactor up are trying new methods and mew ideas that show promise in stopping the radiation leakage.
Once this nuclear reactor problem stops Japan will be booming once more. The money that will be spent in rebuilding the country will only boost economic growth, increase jobs and raise the level of the Yen. I still have trades open for the GBP/JPY and some other pairs with the Yen in it, and have no plans on closing them. I have faith they will close the reactor and once that happens Japan will be back at full strength.
We will see in the coming weeks the future of Japan but as it looks I have a good feeling they will rise once more. I will say while I do feel the Yen will rise up again, that does not mean I am not going short on it to hedge my other trades and squeeze out some profits while everyone else is going bearish on it.
I wish everyone good luck in their trades this week, and go make some pips!
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