On Monday (December 14th), there is a high impact report coming out — The Tankan Large Manufacturers Index of Japan.
A higher than expected reading should be taken as positive/bullish for the JPY, while a lower than expected reading should be taken as negative/bearish for the JPY.
Is this correct ? Anyone else waiting for this news to occur to trade the Japanese yen?
Hi buddy.
In regards to the JPY, most of their moves comes by whether the broad market is in a predominantly risk-on or risk-off sentiment, than an economic indicator event, like that one.
Sure, there will be some kind of movement around that time. The scalping traders. But, in the end, what mostly prevails, is where the big money wants it to go.
Everything needs to be put in the proper context. And the context I’m talking about is in the daily time frame.
How much will the JPY move in a day?
If you research it, you’ll see that their moves will match whether the market is bullish (risk on), = JPY weak, or whether the market is bearish (risk off), = JPY strong.
Now, all currencies don’t necessarily behave in the same way. Some react to their economic news more than others will. But, when it comes to the JPY, that’s more of a safe haven bet. Currency.
Now. Closer to the present time, the JPY had a strong day on Friday. The question I would be asking, is whether the market will follow through with that risk off type of day, or turn risk on and the Yen to fall.
You have to keep the proper perspective.
Mike
Edited:
This is an instance of what the JPY did this week, compared to the economic indicators. It just doesn’t match up.