Opportunity to Trade Forex for Triple Digit Profits Now!
In terms of the best Forex trading opportunities, the best ones are the ones that most traders don’t expect and now one is shaping up that could bring big profits. Let’s take a look at the opportunity in more detail and the logic behind the trade.
Our view is that the dollar is poised for a big move up in all major currencies with the exception of the yen and selling the dollar and buying the yen is a great contrarian trade and while most people are not bullish on the yen, that doesn’t mean I’m concerned as most traders lose.
Everyone is bearish on the Japanese economy and you can see numerous reports as to why it should go down, but bearish news does NOT push it lower and that is a bullish sign.
If you look at a chart of the dollar yen you will see that it has strong resistance around the 84.00 level and although prices may break above it the move will be short lived and the yen will push higher to understand why we need to look at the global economy . background.
Most of the time, the yen moves with the other major currencies against the dollar, but in times of risk aversion and financial turbulence, the yen not only trades in the same direction as the US dollar, but outperforms it.
For this to happen, risky assets like stocks have to fall sharply and it looks like they are going to do just that. The stock market is at a bullish extreme: prices have risen on low volume and the put/call ratio is at an extreme, warning of a top. US stock markets are overbought, but so are stocks around the world. We traded above the levels before the collapse of Lehman Brothers, but the economy today is in much worse shape than it was then.
The dollar will rise on stock market declines, but so will the yen, it happened in the past and it will happen again. Bonds will be in high demand and the Japanese, who are among the world’s biggest savers, will repatriate funds and boost the yen.
For traders looking for a good long-term trade, the long side of the yen on the dollar looks like an excellent opportunity, the risk is low and the reward is high and the fact that most commentators are looking for a drop in the yen is a bullish signal.
Watch for key resistance and sell the dollar on a drop in momentum and get ready for a big trend and gains.