I invested in the USD/YEN and ever since I did its been tanking today. I am new to ForEx. I skipped the Demo Account. I think it is a waste of time. I expected the USD to break at least the 98 level today. IT NEVER DID. USD/YEN has been going down ALL DAY. My questions are, will this rebound in the near future? What’s causing the decline in USD/YEN? I’m willing to ride this out to the 77 level if I have to. Do you think the USD/YEN will rebound and if so when?
Why did you expect ‘the USD to break at least the 98 level’ is important since you are a newbie! In Fx, you just can not expect and trade! You need to learn at list about the market and the information that may affect your trade…
Since April the pair tried reaching 100.00 two times already.
Because it climbed well above the 98 level the previous day. Also, as Konan said it’s already been reaching 100. So, why not? Plus on top of Japan’s monetary policy they are pushing. Here’s where Im not 100% sure about. If a country produces money and their currency stays in their country does that cause the USD/JPY to appreciate or depreciate? I think appreciate since nobody is demanding the yen. There’s no USD/JPY so the dollar will appreciate relative to the yen. Or do I have that backwards? So far its been rebounding. Im in this one for the long haul. 98 and Im out or 77 and Im out. Other than that this will be a rollercoaster ride for me.
Well, it is rebounding in your favor now…above 99 when I am replying this…And yes, you are right, Yen will depreciate if they produce money. This is also related to international trade whether Japan is in trade deficit or in a surplus position! That sets the strength of a currency against another currency alone with other factors…
So, the production of money and the trade deficit/surplus in a position determines the value of a dollar relative to a foreign country. Can you, or anyone else, think of other things to consider when determining decision making as to which currency one should invest in? Also, do you know of any government websites that contain any information on the above? Just curious and thanks for the response.
Thanks.
It is suggested that a newbie should concentrate only one currency pairs. I prefer and observing 1/2 currency pairs where USD is present because this is the most liquid currency. May be USD/EUR, GBP/USD etc. You can choose any pair and then observe them and analyze their charts, price movements…
It is suggested that a newbie should concentrate only one currency pair. I prefer and observing 1/2 currency pairs where USD is present because this is the most liquid currency. May be USD/EUR, GBP/USD etc. You can choose any pair and then observe them and analyze their charts, price movements…
OK Thanks. One more question. Anyone feel free to answer. What are some reliable websites to find interest rates on currencies? Do you know of any? I prefer government websites. I have been looking but I can not find interest rates or if I do I get kind of confused as to what’s what. What is the current interest rate for the USD? Can you please attach a link as proof? I am studying is all. Not trying to be a nuisance. Thank you.
And another big question is START UP CAPITAL. I know it’s recommended that you have a large start up capital. I disagree with that concept for a variety of reasons. What are other opinions on this? For me, it has A LOT to do with the psychological factor behind trading. Such as, if you have a lot of money perhaps you will psyche yourself out and think you have a lot to lose. I am conservative in my approach. So, I am starting with a microscopic amount of capital. Hopefully, to avoid greater future loses. I DO NOT understand why you need a large capital. I really don’t. Mistakes are made. I understand but if you have $50,000 in an account verses $500 in an account it seems like your management style would reflect as well and risk will also be lowered. Just my opinion. What do others think?
When a central bank starts “printing” money they’re essentially giving the domestic financial system loads of cash. When private banks have cash on deposit but don’t lend or invest that cash they pay interest and get no return. Currency doesn’t move out of the country literally but the new cash that’s circulating needs to earn a return for the financial system but when you have boat loads of cash you don’t want to risk loosing it. Hence private banks start buying up AAA/AA+ bonds (mostly government) so they earn a return.
What happens when the Japanese have loads of Yen and want Australian, US, and Canadian bonds. They need to buy the respective currencies to purchase the foreign bonds. When Japan buys lots of US, Australian and Canadian currency but there’s less demand on the other side of the trade it results in the Yen losing value, likewise because there’s so much buying of US, Australian and Canadian currency those currencies appreciate in value.
This is a basic example of economics and foreign currency flows. And btw if the USD/YEN goes up to 100.00 that means the Yen has depreciated against the dollar. JPY has lost value.
Yes, I’ve been studying currency flows and stuff lately. Thank you for clearing up one aspect of currency flows. Can you think of any others? Would trade be an idea associated with currency flows?
Do you mean volume analysis? Or looking at cot data etc
Can you explain them please?