February 22, 2022

Forex Trade Idea: EURJPY and USDJPY sell trades on geopolitical tensions

Japanese Yen Link to Article

The Japanese Yen is the third most commonly traded currency in the world after the US Dollar and the Euro. The Japanese Yen is the national currency for the nation of Japan, which has the third largest national economy in terms of Nominal GDP. Japan is a unique economy, with large manufacture and export of automobiles and electronic goods. The nation is usually considered one of the most innovative in the world, and with the recent rise of Chinese and South Korean manufacturing Japan has begun to focus on high-tech and precision goods. its Generally accepted as one of the safe heaven currencies along side Swiss Franc (CHF) - value of currency tends to increase when extra risk arise of holding alternative currency (e.g. EUR or USD).

Current News Headlines: Russia facing new sanctions after Putin recognizes breakaway regions

This is perfect example of a situation where people would feel uncertain in what currency to hold their savings in such uncertain times when Europe is on the brink of the war. As Euro will be depreciating as war will be in EU borders does not help currency to remain strong. USD may be an option - but USA is also affected by the war development is they are part of NATO alliance is also negatively affected. So holding savings in general top traded currencies will a losing strategy, as there are much better alternatives where capital may be stored and even grow in value.

Lets look at the chart for two World's most traded currencies:

Both of them are loosing out to Japanese Yen, as it is clear to observe on both charts that as time goes by It costs less JPY to buy 1 Euro/ 1 USD. This is when the geopolitical tensions are constantly rising.

This will occur as long as geopolitical tensions will continue to escalate.


Hence, it makes sense to be on the profitable side and be exposed to Yen Growth that will likely to be the wining currency for the months ahead.

Trade Example: USDJPY

Chart : USDJPY 12h Timeframe

Trade Example: Sell position of 10 units of USDJPYpro would result in up to $15,200 profit once the take profit is reached.

Trade Example: EURJPY - a better options is war affects Euro more than USD.

Chart: EURJPY 12h Timeframe

Trade Example: Sell Position with Pending Order at 130.5 with 10 Units of EURJPYpro would result in up to $19,500 profit once take profit is reached.