Exit the Year of the Dragon and enter the Year of the Snake. In the headlines today “Asian astrologers warn of a stormy Year of the Snake“. This recent article cites dismal events that occurred in prior snake years as proof of bad times ahead. Events include everything from 9/11, to the Japanese attack on Pearl Harbor in 1941. A link was even drawn to the 1929 stock market plunge and the Great Depression (both of which occurred in a Year of the Snake).
In light of all the recent currency news coupled with a snake year, what’s our 2013 Forex outlook? This Year of the Snake might not be all that bad if we can do some logical forecasting. Can we use any of these events to benefit our trading? Of course we can, and here’s what we found.
2013 Forex Outlook Shows JPY Pairs To Continue Deteriorating
With all these bad snake vibes around, it’s only fitting to look over at Japan and see how they are slowly falling onto the sword of debt. The currency war with Japan is unfolding as we speak. Thankfully the US dollar seems to be gaining some strength. We are now reaching 2010 levels of pricing with the GBP/JPY with no sign of it slowing down.
This week several of our robots have locked onto these simple trends on JPY pairs and are finding some incredible trades. Specifically, both of the robots in our bundle.
Unnatural forces are preventing the drop of the Euro. However I do not think that the Japanese central bank and their currency will have the same luck. The BOJ seems gleeful at the fact that they can still create sovereign debt for other countries to buy (if not monetize themselves). Our 2013 Forex outlook says you should look for further deterioration in the JPY pairs and use it to your advantage.
2013 Forex Robot Outlook
Our robots and indicators should be trending at the moment. Any trader that is using our Fractal Breakout Indicator can look for huge gains in short periods of time. Tip: Look for daily signals because they have proven their weight in gold since the markets decided that the JPY must fall.
The Directional Forex Robot did really well last month and we’ll continue to see it do well this month if trends last. It’s made to trade huge directional movements like we’re seeing now. If you don’t have a copy, we definitely recommend picking one up today to catch some of these movements. Our 2013 Forex outlook shows these big trends tapering off later in the year.
Look For Unnatural Currency Deflation
While researching for our 2013 Forex outlook, we noticed that It seems as if each country is deciding how they want to devalue their own currency. Recently, actions have been taken in both Latin America and South America that will wreak havoc on the currency exchange in those countries. Most notably Venezuela implemented a mandatory devaluation of its currency, the Bolivar.
Argentina recently announced price fixing for food. The mainstream media claims that Argentina’s President has been cooking the books. But then again the IMF (which is run by the central banks of the world) wants them in debt. Coupled with the fact that Argentina is disputing land with the UK, while China and Japan are also in dispute over meaningless islands. This Year of the Snake might just live up to its name.
2013: The Year of the Backup Plan?
If anything, the lesson to learn from all of these events is that nothing is certain. A trading system that works today may not work tomorrow. Markets can change overnight based on a whim, especially in the middle of a full scale currency war. Having an extra Forex robot on hand is a great way to adapt quickly if need be. It’s a great time to stock up.
Our 2013 Forex outlook might seem dire. Don’t worry though, it’s not all gloom and doom. After these events play out, the rest of the year should stabilize and finish strong. Traders should look to make profits on both the upswings and the downswings. Our Forex robots can be a valuable tool for earning pips while the rest of the world gets bitten by the snake.