The Bank of Japan may well start another series of currency interventions, which hinders the demand for the Japanese Yen. The probability of such a scenario is increasing as the FRS is more likely to start another round of quantitative easing.
Investors anticipate a currency intervention in case USDJPY falls below 78.50. the expectations are being heated by the rumors that the Japanese authorities are placing hidden orders below the level.
Stocks and commodities are gaining value amid the expectations of USD weakness if there is QE3. According to Osama Tokashima, a currency strategist at Citibank, the currency pair may decline below 78.00 in the near future.
According to Masterforex-V Academy, the Japanese Yen keeps strengthening against the US Dollar. USDJPY is forming wave 3(С) or С(С) inside a bigger-scale upswing, represented by wave А(С) or shortened С of level Weekly.
A break below the local low will elongate the current wave through wave 5 or A inside the ‘Hound of the Baskervilles” pattern by Elder/MF. The closest level of support is located at 77.65. The downtrend will be completed as soon as the price overcomes the bottom of the MF sloping channel and consolidates below the MF pivot 79.10.
These days, anyone can make money trading Forex and other financial markets. The opportunities are almost endless. Still most traders still lose in the long run. While some lack experience and skills, others fall prey to emotions or fail to stick to sound money management. There are many reasons for losses. Few people actually make money in the long run because they treat trading seriously like a full-time job and work hard to achieve their goals. They use technical and fundamental analyses and strictly observe money management rules. They use various tricks and techniques to put the odds in their favor.
Apparently, beginners have difficulty trading financial markets without knowledge, skills and experience. Becoming a professional trader requires diligence, patience and time.
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Yesterday, on May 21st, was a notable day for the eurozone. The Euro Parliament approved the Euro Group’s idea to use major deposits over €100 000 in emergency situations to save a risky bank. Deposits under €100 000 are ensured by the compensation scheme.
Most beginning traders are sure that it is possible to trade Forex profitably and easily. They usually assume that perfunctory knowledge is enough to make money in financial markets in general and Forex in particular. Alas, they are wrong. Obviously, it is possible to trade Forex profitable. However, it cannot be done without specific knowledge, skills and experience.
This delusion is the main reason why they lose in the long run. As a result, most of those losing beginners get disappointed at Forex and abandon the idea of becoming a winning trader forever. Some of them even start call it a scam or fraud. Some of them put the blame on brokers while others refer to bad luck.
Essentially, Forex has nothing to do with scams. Apparently, you may come across some dirty broking companies but that has nothing to do with Forex itself. Besides, such scammers can easily be avoided by following a few simple rules. However, this is another story (Masterforex-V Academy told us many times how to choose a reliable broker).
Today, on May 20th, Forex started a new trading week. There have been no radical changes in the market of EURUSD so far. The previous bearish move was elongated by some 200 points. The price keeps developing the ABC pattern of wave level Daily. The move hasn’t reached any of the given targets so far.
It seems like more and more experts feel bearish on the near-term prospects of the common European currency. Some of them say that EURUSD may even drop down to 1,15 in late 2013. If this is the case, this will be the lowest level in 10 years.
Yesterday, on May 15th 2013, Eurostat published a eurozone GDP report, which reflects the economic dynamics in al the 17 countries. The figures turned out to be much worse than expected. In Q1 2013, the aggregate GDP dropped by 0,2% as compared to the previous quarter. At the same time, tere was a 1% decline year-over-year.