WorldWideMarkets Community

Forex Trading, Market News & Technical Analysis

Sunday’s Japanese Election Key to Yen Strength or Weakness

Posted by WorldWideMarkets . on Jul 19, 2013 3:17:00 AM

Price action shows long dollar/yen positions building before the weekend ahead of an expected win by Japanese Prime Minister Shinzo Abe's LDP party in an upper house election on Sunday. Such a win would allow Abe to continue with his aggressive stimulus plans of monetary easing and government spending. The yen fell to a seven week low against the euro on Thursday. If the dollar breaks above 101.50 yen with momentum, the uptrend is clearly intact. The risk is that Abe’s party loses and Abe is not endorsed by the electorate in which case investors betting on yen weakness clearly on the wrong side of the trade. But for now, election opinion polls seem to indicate yen weakness is the safer trade.  The yen has lost 14.2 percent against the dollar in the last year making it the worst performing of the 36 most actively traded currencies against the dollar. yen trading


Tools & Educational Resources

Forex 101LEARN MORE >>
Learn the basics of Forex and how to practice trading the markets.

GlossaryLEARN MORE >>
Confused by the language? Click here and search for key trading terms.

Browse our frequently asked questions and find your answers right away.

Access to the educational lessons, webinars and platform walkthroughs.


Get started with a FREE $10,000 Demo Account and experience the Forex Market RISK FREE!