Ten years ago, you could buy AUD/USD at 0.4800 – a gain of roughly 5600 pips today.
If you were to make a trade and hold it for 10 years what would it be?
Japan will release trade balance figures at 2350GMT. They are expected to show a deficit of ¥170 billion in December — the sixth month of deficits this year.
Here is 30-year of of monthly trade data, with the 12-month moving average highlighting the trend:
The move higher in USD/JPY today was driven by long-term macro players (maybe not 10 years but at least 2 or 3). A major shift in thinking on Japan’s economy is happening now. Sell the yen rallies, buy the dips.
For more, read the wonderful column Gerry has supplied below.
