Hey guys just catching a bit of news and I am wondering if there are any insights, general or specific, on how and how long this mornings earthquake in japan may effect the yen. Thanks ahead of time.
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i dont think we will see great fluctuations since it is something common and i don’t think the effects can be huge
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I admit to being long USD/JPY, but this was in response to the potential Smash Day pattern set up by the low close on 28/12, nobody knew an earthquake was coming.
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Typically, such events can cause immediate volatility, but long-term effects vary. It’s best to monitor official reports and market analysis closely over the next few days to weeks.
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Which yen pairs are you actively trading?
None. It was more of an academic question. To get some perspective from more experienced people.
A natural disaster typically causes an immediate drop in the currency due to initial uncertainty, followed by fluctuations based on recovery costs, economic impact, and government response.
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News events like this are worth quick trades in both directions. They can cause an immediate price drop below the median, then a large price rise above it - opportunities to go both long and short. But quick responses are needed: the main danger to avoid is holding for too long - that can mean two losses.
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Yes, during events like this, you need to sit behind your computer and analyze the charts as quickly as possible, entering and exiting positions with speed.