Yen Falls as Apple Earnings Boost Appetite for Risk

The Japanese Yen is trading weaker overnight. Now that fears of another banking crisis in the U.S. have subsided, trader appetite for risk is increasing slightly and traders are selling Yen to buy higher risk, higher yielding assets.

The Japanese Yen is trading weaker overnight. Now that fears of another banking crisis in the U.S. have subsided, trader appetite for risk is increasing slightly and traders are selling Yen to buy higher risk, higher yielding assets.

Better than expected earnings from Apple and Ebay are helping to drive equity markets higher, which is putting pressure on the Yen because of the carry trade. Bad news from UPS could help the Yen rally if it triggers a break in the stock market.

Economic news continues to be bleak even though losses from exports were less than the previous month. Since the Japanese economy relies heavily on exports, its economy is not expected to show any signs of a recovery until the economies of its major trading partners improve. Last week’s news that China’s economy may be going through a contraction because of falling exports should keep the pressure on the Japanese economy.

James A. Hyerczyk has been actively involved in the futures markets since 1982. He has worked in various capacities within the futures industry from technical analyst to commodity trading advisor. Using W. D. Gann Theory as his core methodology, Mr. Hyerczyk incorporates combinations of pattern, price and time to develop his daily, weekly and monthly analysis. His firm, J.A.H. Research and Trading publishes The Forex Pattern Price Time Report... More

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