Excerpt from: Forex Forecast
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| October 09, 2008 | | Japanese yen drops on risk appetite | The forex trading forecast for the Japanese yen may be calling for a correction. Even though the yen is down on increased risk appetite, things could turn around. Yen losses in currency trading have been relatively small, and that is leading to the belief that the return to the carry trade has not been overwhelming.
On the other hand, yesterday's coordinated rate cut (in which Japan did not participate) has had the effect of making things a bit more dollar positive. This may mean that no correction will come, and that the yen will keep on dropping.
With the forex trading forecast, you never really know for sure. The volatility of the market, especially at this time, is what makes the yen carry trade -- and other trades -- so risky.
| Topic Tags: currency trading, dollar positive, forex trading forecast, forex trading yen, Japanese yen, yen carry trade, yen correction, yen currency trading | |
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