subject: USD|JPY, What a Ride [print this page] USD|JPY, What a Ride USD|JPY, What a Ride
While the Bank of Japan's recent efforts to lower the value of its own currency have been rather lackluster as of late the Federal Reserve Bank has done it a favor by instituting a several month program of quantitative easing. This program has already dropped the dollar numerous pips against the Yen and doesn't show any sign of slowing down in the near future. The constant back and forth of this pair presents a huge opportunity for scalping if the trader is so inclined to take advantage of the opportunity.
The USD's instability is sure to rage on not only from quantitative easing but also its involvement with the conflict on the Korean peninsula, however Japan will also probably be involved in this conflict due to how close it is. If both the US and Japan become involved in the possible conflict to arise in Korea it will signal currency instability in both the JPY and the USD. Again, this is a great place for the experienced scalper to get in, take note and take action.
Recording the proper pivot points and having stop loss and take profit figures here will certainly make or break your trades. This pair is far from safe for the beginner due to the severe level instability present in these countries, their currencies and their current financial agendas domestically and abroad. Japan and the United States have a lot of problems to solve and until they do this will be a wild ride for seasoned traders and probably a profitable one. For the rest it is a tempting but dangerous proposal and should be avoided.
