Who can explain why stock collapse will push yen mutch higher?
Called the carry trade. A great deal of loaned money is repatriated as positions are unwound and much of this has been borrowed against the yen because of its low interest rates
So by repatriating money what kind of risk can be avoided? They expect that interest rate will drop, no?
Its also called the carry trade because of the carry over interest when borrowing high yielding currencies versus a low yielding currency.
Generally, when the big funds start losing in the stocks they profit or close trades from the hedges in carry trades. These guyz have enough money to move the prices so they could care less about or set ups.
So when you see a huge yen Surge you can consider that risk management by money much bigger than ours, our job is to ride with the price action, so don’t worry about that stuff much.
Just sell when its time to sell and buy whens it time to buy. Backtest your game plan and stick to it.
If you have no gameplan stop attempting trading immediately and get some help.