Recent news on Friday as the yen hits 7 year low against the dollar. The basis is due to the increase in monetary base announced by the Bank of Japan and the increase in risk assets.

Market sentiments have moved the yen trading range from 105 – 110 to 110 – 115.

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Currently the Japanese Yen is at 112.75 and the momentum seems rather strong. The last time it was at this price was in 2007.

Still the overall trendline since 2000 – 2014 shows a downward trend as of now.

Depending if there is a breakout from that trend or not, will be good to determine whether to buy or sell the yen.

After the announcement by BOJ, another announcement was released by the Government Pension Investment fund stated that it will increase its holdings of foreign stocks to 25% from 12%, unexpected to many which will likely cause more people to sell the yen.

It is a good time to consider selling the yen against a bullish currency for a short-term period. But as the yen slowly reaches it’s resistance level, such trades should be monitored closely or placed with a stop loss in the event of a reversal.