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My name is Martin, from Cape Town, ZA. I'm the Co-Founder and Chief Editor of the growing Traders Community. I've an experience of over 8 years in Forex as a Portfolio manager, Trader and guest writer for many financiel and forex websites such as,... More
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Binary Options that Suck
  • Japanese Yen Still Gaining On The USD 0 comments
    Oct 29, 2013 12:13 PM

    The Yen seems undeterred by the agreement that the Republicans and Democrats reached in Congress last week, and keeps posting modest gains over the US dollar. The numbers themselves are not impressive, but binary options traders should treat them seriously, because they marked the reversal of a recent trend. For a couple of weeks, the USD/JPY hovered above the 100 line but last week it closed below 97.7 and it is very likely for values below 96 to be reached this week.

    Live To Fight another Day

    It is clearly a mistake to assume that now that the US didn't default on its debt, all problems are washed away, or that a similar situation won't occur anytime soon. The agreement is only valid for a couple of months and even though the government shutdown and the debt ceiling issues were momentarily resolved they will resurface at the beginning of the year. Keep in mind that the holiday will precede that moment and lawmakers have serious problems in making mutually beneficial deals. We are very likely to have the same circumstances in early January and binary options traders should take advantage of such a context.

    The Japanese Yen didn't post the same impressive gains as the British pound, and the main reason is the fact that the Japanese economy didn't provide any groundbreaking numbers. The current week is not going to change all that, but there are a couple of events that have the potential of moving the market into one direction or the other. The trade balance which was released on Sunday night, reveals the fact that the economy posted minor improvements and the trade deficits have been reduced by a narrow margin.

    What to Look For On Both Sides of the Ocean

    Given the minor impact on the trade balance numbers, and the equally impressive numbers revealed on Monday by the Industries Activities, there is nothing to look forward to until Thursday. Binary options traders need to make a difficult decision, but if they are to maximize their profits this week they shouldn't wait three more days before buying call options. The Japanese Yen is still gaining on the US dollar and as long as these expectations are not set too high, call options could easily finish in the money.

    A potential market mover on Thursday is the Tokyo Core CPI followed in less than half an hour by the Corporate Services Price Index numbers which are both expected to be positive. They will probably not shake the dynamics of the currency pair, but neither will the American Non-Farm Payrolls which are scheduled to be released before that. This is the event that traders should emphasize and if the numbers are mediocre or bad, they should trigger the immediate purchase of call options.

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