Japanese July and Seasonality

Just as time can affect trading on a 24-hour basis, there are also times when the currency market develops patterns of activity throughout the year. This is called seasonality.

One of the most notable examples of seasonal currency patterns is called Japanese July. Eight of the past ten years has seen the US dollar strengthen against the yen in July. Though it’s difficult to pinpoint an exact reason behind this pattern, there is definitely a strong correlation between these two currencies during the month of July! Keeping this sort of seasonality in mind can tell you that July might be a good time to scale up in good long positions and to take smaller-than-usual short positions.

There are other historical patterns that seem to happen throughout the year, so find out what they are and take advantage! Good luck, and happy trading!

About Tom

Tom Lund is the Content Manager at Apiary Fund where he began his career in 2012. He creates and edits the educational material that Apiary Fund uses to train new foreign exchange traders. Lund researches and writes the investing news and tips for the Apiary Fund blog and website. He graduated from Brigham Young University-Idaho with a bachelor’s degree in English.

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