By James McKee
The tsunami that occurred just off the coast of Japan has continued to cause waves throughout the island nation’s economy, this is due to the ever-present threat of nuclear meltdown. Workers have been working around the clock in an attempt to resolve trouble with a nuclear reactor that has been going into meltdown for a couple weeks now. Readings from the power plant have been scary to say the least and today Japanese officials learned that the data was misinterpreted and that engineers made a mistake. Japanese energy employees are being pushed to the breaking limit and it is likely that more mistakes will happen in the near future.
The rest of the world has continued to contribute to Japan’s emergency funds in an effort to avert disaster not only in Japan but also on a global level. Nuclear particles have been found as far away as Iceland and this is concerning for the global community. If the nuclear trouble persists the Japanese Yen will surely see much instability on forex charts in the near future, just remember that the Japanese Yen is ideally weak against other majors so in this time of crisis it will likely rise in value.
Pairing the Japanese Yen with a weaker major like the CHF or USD is a good idea, stay away from the GBP/JPY pair as it has been smashing through resistance and support on forex charts a lot lately. In these times of uncertainty fundamental trading really comes in handy in addition to technical trading, keep your eyes glued to your charts and stick to small time frames where possible. Intraday trading for the JPY is not recommended currently unless you have done extensive research and have the proper TP/SL stops in place, take comfort in the fact that what goes up must come down.
About the Author
Author is a Forex trader and financial analyst residing in Denver, Colorado. To stay up to date on all the latest developments in the financial world and beyond be sure to check out the online forex trading regularly.
