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Strategies & Market Trends : Systems, Strategies and Resources for Trading Futures -- Ignore unavailable to you. Want to Upgrade?

To: Patrick Slevin who wrote (40517)	2/8/2000 9:11:00 AM
From: Tom Trader	Read Replies (2) \| Respond to of 44573

When you look at the Yen, Tom, do you try to divorce it from major economic factors and try to play it based on associated signals? The signals for the yen are based purely on the price action and the fundamentals are not part of the system for generating signals. In fact, when I used to trade the swissie and mark as well as the yen, I could be long the one currency and short the others. A couple of things to keep in mind when you trade the yen is that it does tend to trend nicely a good part of the time. Unlike the spoos, where overnight action can in many instances be ignored, when it comes to the yen, what occurs overnight is often relevant. Also because of the overnight action in the currencies, gaps are not uncommon in relation to the close in the regular trading session versus the open the next day. Finally, one of the unknowns that affects the yen because of the issues of maintaining a certain dollar/yen relationship, is the likelihood of central bank intervention which can skew things quite markedly when it occurs. But it is a good market to trade with the potential for decent returns -- fair amount of liquidity and relatively low margins. What are your thoughts regarding the outlook for the spoos given yesterday's action -- and today's gap open?