Stars Align – U.S.D Crater Begins

When you zoom out and trade as “deep and wide” as I do……you don’t let the small squiggles get in the road of your larger “macro economic view”.

Mind you…..On occasion I love to get down in to the trenches as well…( short-term trading an hourly chart – something I call fun! ) but rarely as…..the short term trend works best when matched up with both the medium and the long.

stars_align_forex_kong

stars_align_forex_kong

In this case – Short U.S Dollar / Long Bitcoin.

Teetering on the edge….the precipice as it where. U.S D ( as suggested ) looking to fall off a cliff.

Little to add on a slow Wednesday, short of Thursday ( generally seen as a “news day” ) on deck – and likely larger moves in markets.

It’s still just early September.

The big boys / overall trading volume still quite low……I don’t expect “fireworks” for another week er so, when the USD slide becomes something “discussed” in the main stream media.

Keep in mind…..a weak dollar benefits Trump’s general plan / The Fed’s overall plan, and the only way forward for the incredible “recovery in the U.S”.

Stars align. Very little brain power needed.

 

 

Why Watch the Japanese Yen – JPY

The Japanese Yen is considered a safe haven currency primarily because the majority of Japan’s debt is held locally, by japanese citizens. Unlike in the Unites States where , in case of default – many countries would be at risk of loss – Japan’s debt is mostly held locally and therefore represents a higher degree of safety.

A weaker yen translates into increased competitiveness for Japanese companies overseas, since they can provide products and services their cheaper and still reap a healthy profit in yen when they repatriate their profits from abroad.

When currency traders start to see money flowing “out” of the yen – this is often a sign of “risk on” behavior, as the money is seen exiting the safe haven protection of the Yen – and likely filtering into higher risk currencies and assets.

Overnight, we’ve seen a considerable wave of Yen selling as many other currencies have made considerable ground (USD some 80 pips as well CHF for 100 pips, as well AUD , NZD and even the EUR) So keeping a close eye on the Yen can prove to be valuable indication, that a turn is near.

I am currently long USD/JPY, AUD/JPY, NZD/JPY as well long EUR/JPY – AUD/USD, NZD/USD and short USD/CAD.