Epidemics, financial crises, wars, politics, etc. are closely related to Forex. You need to know that the market will definitely move. As of October 2021, the yen plunged and the yen was always sold, but as of the beginning of December 2021, the yen was bought all at once. The main reason is that a new mutant of coronavirus, Omicron, was found in South Africa. There are other factors such as the drastic deterioration of the unemployment rate in the United States, but FX has a very close relationship with the social and political situation and has a great direct impact on the market. Traders will experience huge losses if they do not trade with this understanding.
Exchange rate fluctuates due to Lehman shock
It was September 15, 2008. The bankruptcy of Lehman Brothers was suddenly decided. This caused the Great Depression, flooded with unemployed people, and disrupted the world economy. The exchange rate is also similar, causing major fluctuations in tandem. In October 2008, AUD / JPY and others have plunged more than 10 yen in just one day. Only a few months ago, the AUD / JPY was in the 100 yen range, but it dropped to 50 yen due to the Lehman shock.
The market price fluctuates due to coronavirus
The coronavirus spread by China caused the world to panic from around the fall of 2019. February 2020 The USD / JPY market will undergo major fluctuations. In the latter half of February, the global stock market crash called the corona shock was triggered by the spread of the new coronavirus all over the world. The Nikkei Stock Average has remained steadily rising for several months, and has plummeted since it was aiming to renew its highs. As a result, USD / JPY moved up and down by more than 10 yen.
Buy Yen when you have anxiety
What we want traders to know is that the yen will be bought when it comes to social upheavals such as plague, finance, politics, and war. People all over the world have the image that the Japanese yen is safe and stable, so if there is an anxiety factor, the yen will definitely be bought. As of 2021, the threat of coronavirus still remains, and it is highly possible that the yen will be bought for some reason. This is evidenced by past history.
The law that catastrophic changes occur once every 10 years
A major economic crisis occurs once every 10 years. The Nixon shock occurred in 1971, and the first oil shock occurred in 1973. Japan’s bubble burst in 1990. In 2000, the IT bubble burst in the United States, which had a major impact on the Japanese economy, which was heavily involved in high-tech products. In 2009, Lehman Brothers suddenly went bankrupt. And at the end of 2019, there was a coronavirus outbreak. As a result, there should be a major financial crisis or social upheavals in 2029 or 2030.