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TYR/JPY: An Excotic Pair Worth The Investment

ByChristopher Lewis
Published 08/06/2014, 09:35 AM
Updated 07/09/2023, 06:31 AM

I have no fear of trading "exotic" currencies. In fact, I think that they will typically make for better long-term trades, as they will often trend for long periods of time, and are more likely to be of a technical nature. In fact, that is exactly what I am writing about in this article.

The TRY/JPY pair is one of my favorites at the moment, as it pays a decent swap at the end of the day if you are long. The biggest issue is that it isn't the easiest pair to find, but when you are able to trade it - the pair can be a great investment. That's the key word though: investment. Not many people will come into this market and scalp it, although the spread isn't too bad to be honest. My broker is currently offering it at a 2 pip spread as I write this. However, the pair can be a bit more depending on where you are trading it, and the time of day.

Nonetheless, in the environment that we find ourselves in, ther is almost no real yield to be had, and as a result carry trades can be used when needed. The pair is as close to a large carry trade as most of you will have access to, and as a result the larger rectangle is something you may want to consider. I know I am.

I am going long of this pair today, and aiming for the 49 level, although I think we could go as high as 49.50 - no need to be greedy.

The 47.00 level below should continue to be supportive, and as a result I think that any dip in this region will find buying pressure as the rectangle is so obvious. The obvious trades are exactly what I like.

The month of August is almost always slow, so it is time to start thinking a bit differently than other times of the year. If you can get paid to wait - you might as well.

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