Hello, I’m new to fundamental trading and would like to get some feedback/ opinions or diff point of view based on this Fund-Analysis.
i don’t know how events affect the charts in real time in off hours/holidays. I went in Long in USD/JPY because of Earthquake, I’m expecting Yen to go down due to this, anyone else went long? I expect for this to playout in the next day or weeks, as result if DXY remains where it is or even rises JPY (yen) should not rise and fall along w/ other JPY pairs to go short on. I was expecting this to have hit the charts right when it occurred or have an higher impact, but due to being Jan 1, I suspect It is running on autopilot and no human mechanical manipulation to intervein. I suspect when news hit in the AM , that will spike up? anyone else agrees w/ this or went in long?
FYI - went long about 21:45 (-5 UTC)
also, hope everyone is safe in jpy and this is just an a temp/short term infrastructure cost hit.
Thanks
When it comes to trading news like the Japanese Earthquake the markets are well oiled machines and the big players with very deep pockets act very quickly, move the market then move on.
By the time you found the news then decided to trade the news any potential profit opportunity is likely to have long gone.
I think that makes sense. Trading based on the events and news using different techniques from fundamental analysis can be profitable. In your case, you should follow this tendency, because earthquakes are rather usual for Japan, unfortunately. I personally have no idea what will be the effect of the recent earthquake on this currency pair, as it will depend on the damage caused by the element.
Guess that you will succeed.
I think the overall long term sentiment is short on the pair but I’m speculating we won’t really know for at least another month or longer.
It seems like the pair is rallying long, short term, so you might be good if you have targets set and plan of action.
As far as trading the news, I see scalpers trade volatile events and have paid news feeds to get information as quick as possible. Like someone else said we generally get news late. If they’re swing fundamental traders then they take an overall look at all events that would impact the 2 countries, not just one isolated event. Remember the yen is a safe haven currency too. Generally it’s strong when other currencies are weak and vice versa.