FxWirePro Call Review: Yen weakens as North Korea tension recedes; maintain long position

The yen has weakened against the dollar after reaching as high as 108.3 per dollar yesterday over North Korean missile launch that flew through the airspace of Japan and traveled 2700km before plunging into the Sea. However, as the United States, Japan, and South Korea called for emergency UN Security Council (UNSC) meeting and chose the diplomatic path instead of further escalating the tensions, yen gave up all the gains and is currently trading at 110 per dollar, which is the weakest level for the safe-haven currency in two weeks.

However, we believe that the run for the yen is not over yet. Hence we would like to recommend our readers to maintain the short positions in USD/JPY as suggested in previous articles.

We have been short on USD/JPY for quite some time now. Back in May this year, in an article named, “FxWirePro: Buy yen at dips targeting 101 per dollar”, available at http://www.econotimes.com/FxWirePro-Buy-yen-at-dips-targeting-101-per-dollar-674020 , we suggested buying yen against the dollar, with a target around 101 per dollar. Here is the recommendation from that article, “We recommend buying the yen at dips against the dollar with a target around 101 per dollar. Proffered buying areas are here at 112 (10 percent of the total intended position), then at 114 (20 percent of the total intended position), then at 115 (60 percent of the total intended position) and finally at 116.5 (10 percent of the total intended position). We would recommend stop loss after entering fully into the trade.”

In a subsequent article, named, “FxWirePro Call Review: Maintain USD/JPY short; stop loss recommended”, available at http://www.econotimes.com/FxWirePro-Call-Review-Maintain-USD-JPY-short-stop-loss-recommended-729744 , we noted,

“The yen weakened to as low as 114.3 per dollar before strengthening again. As per our guideline, our readers couldn’t have entered the entire desired positions.  We recommended at this point maintaining the entered positions and add fresh positions at breakouts. An addition of fresh short positions is recommended one the pair break below 110. As of now, we would like to recommend a bigger stop loss around 115.5 per dollar.”

In this article, we would like to reaffirm our bullish view on yen and with a target around 101 area, with an interim target around 103.7 and with a stop loss around 114.5