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I Have Just Taken Profits in My Yen Short Position

After a very, very extended profitable run, I have just now taken profits in my Yen position and reduced my short exposure by half. I originally took the short position by buying the USD/JPY currency pair at an exchange rate of 77.785 Yen to $1 US Dollar and I took profits at 87.049 Yen to $1 US Dollar. In other words, each USD buys approximately 10 more Yen, reflecting an 11.9% drop in the Yen's value since September! This is a major move in currencies in a very short period of time and is part of the reason I am taking some profits off the table. If you have taken my advice to create a short position in the Yen for yourself, I would recommend taking some profits off the table at this time. However, I would also recommend keeping a core short position as the Yen may be at the initial stages of much greater drop over time. I do not encourage new positions at this level at this time, but if you already have a position, it is worth keeping some of it intact for a potentially larger eventual move. I just noticed that I actually made the original investment to short the Yen on September 12th, 2012, which was the day my son was born! I'll let him know when he is able to understand that his birth potentially marked the absolute peak in the Japanese Yen prior to its decline. By the time he is able to understand, I expect the Yen to be much lower than it is now. In the mean time, I will throw the profits towards his college fund and perhaps attempt to re-establish a larger short position if the Yen pulls back a bit from its recent decline. Happy investing out there and please remember that currency trading can entail a lot of leverage and risk. Please ensure you are employing risk controls at all times if you decide to make currency related investments.

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Written By: Joshua Ungerecht
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Currency Trading, Japanese Yen, US Dollar