No, DPJ isn't a new currency you don't know about, it's the Democratic Party of Japan, which just pushed the Liberal Democratic Party off its 60-year perch. You can read the gory details in the New York Times or your favorite newsfeed in Currensee's Research Dashboard, but the short form is that the new party is talking about taking Japan's economy in a different direction.
How is that going to affect the USD/JPY and other currencies trading against the Yen? If I knew that, I wouldn't have to write this blog, but smart Forex folks like Kathy Lien and Forex Traders at Seeking Alpha are putting their thoughts out there, and discussion is bubbling up on the Currensee Community too.
As I type this and the New York market opens, 9% of the Currensee community is trading USD/JPY with 42% of the money short and winning right now. Another 13% of the community is trading the Yen against other currencies, mostly GBP/JPY and EUR/JPY, and most of that money is winning on the short side too, so the DPJ news looks good for the Yen, at least for now.
It's well-documented that markets can be used to predict the outcome of elections, but it remains to be seen how well the experts and the community will do using the Japanese election to predict the market. Join us on Currensee and find out.
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