The Yen has risen in value the most in a month on the back of geopolitical tensions and stock market volatility. Even though the Bank of Japan continues to print staggering amounts of money to prop up its economy. I warned in this report last week about trying to get long on the Yen when negativity is in the air on stocks and geopolitical tensions are rising.
Currently there is a war in Iraq, Syria, Ukraine and the deadly battles between Israel and Hammas don't seem to be going away either. I doubt an overnight cease fire between Hammas and Israel will hold as both sides seem hell bent on their demands and no ceasefire has held true so far, so why should we expect this one to hold.
The Yen and Swiss Franc have the potential to gain strength in the short term so just be careful in the coming week or so trying to play the Yen and Swiss Franc short. As I mentioned last week I personally do not trade the Yen at all because of its unpredictable volatility.
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