Why Currencies Are Offering the Best Trades in a Decade

[Trading With Larry Benedict]( Why Currencies Are Offering the Best Trades in a Decade By Larry Benedict, editor, Trading With Larry Benedict This week, we’ve been taking a deep dive into one of the most forgotten markets in the world… currencies. Yet the foreign exchange (FX) market is the biggest in the world (daily transactions average nearly $7.5 trillion). It also has little correlation to the stock market. That means you can make money out of FX no matter what the stock market is doing. The other great thing about the FX market right now is that it’s throwing up the best opportunities in over a decade. On [Tuesday]( we saw how rapidly rising interest rates caused the euro to fall heavily against the U.S. dollar. And then [yesterday]( we ran through a euro trade we did in my option advisory, The Opportunistic Trader, that generated a 37% return in just a week. Today, I want to check out an even bigger move in the Invesco CurrencyShares Japanese Yen Trust ETF (FXY)… Recommended Link [“What I’ve learned is going to shock most people...” – Dr. Nomi Prins]( [image]( What if America’s next crisis looks nothing like the last? Would you know how to prepare? I’ve written more books than anyone on the state of our financial system… And I’ve been invited to meet with the folks at some of the most powerful organizations in the world, like... · Federal Reserve officials... · The International Monetary Fund... · The World Bank... · Google · The United States Senate · The Tokyo Stock Exchange... · ...and The London School of Economics... And now, I’m working with everyday Americans to help them take charge of their money and prepare for what’s coming... [Click here to find out how to prepare now.]( -- Inflation Is Not “Transitory” The chart of FXY below tracks the Japanese yen against the U.S. dollar… When FXY is rising, the yen is increasing in value compared to the U.S. dollar. And when FXY falls, the yen is losing value against the U.S. dollar. Each bar on the chart below represents one week of price action… Invesco Currency Shares Japanese Yen Trust ETF (FXY) — Weekly Chart [Image] Source: eSignal You can see how flat FXY traded from 2019 to the start of 2021. While you can’t see it here, this price action goes all the way back to 2014. Apart from the odd blip, FXY barely moved for nearly seven years. However, coming into 2021, that all started to change… After initially dropping to level ‘A’ (around its 2020 low), FXY traded sideways before dropping down to level ‘B.’ Again, FXY traded sideways until the reality that the Fed would need to raise rates started to bite… You can see how sharply FXY broke below that support level (‘B’) once the market fully digested that inflation was not “transitory”… and that the Fed was now caught in a massive game of catch-up. In the space of eight months, FXY lost nearly one-quarter of its value… and around one-third from its 2021 high. Take another look… Invesco Currency Shares Japanese Yen Trust ETF (FXY) — Weekly Chart [Image] Source: eSignal You can see how the Relative Strength Index (RSI) bearishly remained in the lower half of its range (below green line) for the entirety of FXY’s down move. However, like any other market, currencies can overshoot… much like we saw here with FXY. With the RSI and FXY showing a converging pattern (orange lines), FXY bottomed out and set itself up for a reversal. When buying momentum increases like this, the stock price will eventually stop falling too. FXY then rebounded as the RSI broke higher and bullishly broke back into its upper range. But with buying momentum waning, FXY’s bounce has also petered out. So what am I looking for around here? [Viral Trading Secret Exposes: “America’s #1 Retirement Stock”]( Free Trading Resources Have you checked out Larry's free trading resources on his website? It contains a full trading glossary to help kickstart your trading career – at zero cost to you. Just [click here]( to check it out. Bullish Signs Tested You can see that after its rally up to ‘1,’ FXY recently made a lower high at ‘2’… This move coincided with the RSI tracking right back along support (red circle). For FXY’s rally to resume, we’ll first want to see the RSI hold support… then begin tracking higher into its upper range. The next test for FXY would be to take out its recent short-term high at ‘1.’ Another thing I’m watching is our MAs… Although the 10-week moving average (MA, red line) broke above the 50-week MA (blue line) earlier this year, you’ll notice that it recently turned down. For FXY’s rally to hold longer-term, we’ll also need to see both MAs begin to track higher. I know that trading currencies may seem a bit complicated. It can be challenging to know where to start. However, as this FXY chart shows, you could be missing out on some massive opportunities if you ignore this space. I’ve learned from trading more than $500 billion of currencies since the 1980s. And I’m very excited to share my experience with my readers. That’s why next week on April 19, I’ll be holding a special free event to show you how the FX market works… the best strategies to trade them… and the incredible profit potential we’re looking at right now. [To RSVP with one click, go right here to register for this event.]( I hope I see you there. Regards, Larry Benedict Editor, Trading With Larry Benedict IN CASE YOU MISSED IT… [Sell YOUR Stocks… Keep Only ONE (ticker revealed)]( Jeff Clark predicted the crashes of 2008, 2020, & 2022 – helping his readers dodge huge losses. He then helped double his readers’ money 13 TIMES in the last year alone… But after watching his OWN 23-year-old soon lose -60% in risky crypto & tech stocks… Jeff is finally coming forward with his biggest WARNING yet. Jeff says: “Sell Your Stocks BEFORE The Stock Shock!” [Click Here to See Jeff’s New Warning.]( P.S. – Jeff refuses to watch his own son lose any more money in risky investments. So, he is rolling the camera to help him win back all his losses – and then some – [with just ONE ticker.]( [image]( [The Opportunistic Trader]( The Opportunistic Trader 55 NE 5th Avenue, Delray Beach, FL 33483 [www.opportunistictrader.com]( To ensure our emails continue reaching your inbox, please [add our email address]( to your address book. This editorial email containing advertisements was sent to {EMAIL} because you subscribed to this service. To stop receiving these emails, click [here](. The Opportunistic Trader welcomes your feedback and questions. But please note: The law prohibits us from giving personalized advice. To contact Customer Service, call toll free Domestic/International: 1-888-208-6550, Mon–Fri, 9am–5pm ET, or email us [here](mailto:feedback@opportunistictrader.com). © 2023 Omnia Research, LLC. All rights reserved. Any reproduction, copying, or redistribution of our content, in whole or in part, is prohibited without written permission from Omnia Research, LLC. 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