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Yen/Dollar
someone mentioned the world might collapse if dollar / yen hit 110.
in the mid to late 90's dollar / yen was 80, world still survived inspite of the Asia melt-down and Y2K and 9/11 happening after that.
how do the analysts get u to read their story unless they come out with eye-popping headlines.
will drop further to 110 if it fail to support at 116.5.
Will you unwind if your carry trade for USD/JPY stands at 4.75%? Even if Japan Central decides to raise their interest rate to another 1/2 percent basis point, the positive roll will still be 4.5%. Similiarly take a look at GBP/JPY and do a currency conversion strength from GBP to JPY. For every 100K of GBY/JPY bought thru margin, your interest is 24.3USD PER DAY. Multiply that by 7 for 7 days, you get $170USD for carry this 100K GBP/JPY trade. Isn't FOREX beautiful? :)
$/Yen dropped to 116.8 today. Unwinding of Carry Trade resumes...
Low-Yielding Yen Rises as Investors Trim Risk
By Reuters | 13 Mar 2007
The yen rose against the dollar and euro on Tuesday as concerns about the U.S. mortgage market and caution ahead of key U.S. retail sales data prompted investors to trim exposure to high-yielding currencies.
The euro was under broad pressure ahead of the closely-watched ZEW survey of German investor sentiment which could shed light on the outlook for euro zone interest rates after a hike to 3.75% last week.
On Monday concerns about a rising number of defaults in the U.S. subprime mortgage sector and its possible impact on the broader economy sparked buying in low-yielding currencies such as the yen and the Swiss franc.
(Read full report) http://www.cnbc.com/id/17584952/site/14081545
SELL INTO STRENGTH.
Since the recent "healthy correction", I think it is advisable to SELL INTO STRENGTH, but it is easier SAID then done.
I think it is time to trim and consolidate our stocks. Just keep the good ones and sell the bad ones, even if we are losing money for the bad ones.
Trading Technique, Rule No. 7. Sell the Losers Early.
Get ready for the next major correction or "crash". It may come earilier than you expect.
Expect the "unexpected."
Just my opinion only.
World markets may collapse if $/Yen hit 110 support level.....
http://www.remisiers.org/research//REG-AlphaEdge-120307[cimb].pdf