Should I Buy Yen Trust (FXY)? Finance YouTuber Analysis

The YouTuber recommends a call spread strategy on FXY to profit from the potential strengthening of the Japanese Yen against a weakening dollar. He suggests that while the trust itself may not move significantly, options can offer substantial returns.

“I would instead use that same call spread strategy you we used with the udn for example buying the September $60 calls on the Yen trust for $155 and then selling the same number of $61 calls for $115 each means a cost basis of 40 cents each a potential 150% return if the trust finishes above $61 by expiration.”

The YouTuber suggests buying the Yen Trust ETF as a short-term investment. He anticipates a weakening US dollar due to potential government shutdown chaos, slowing US economy, and a shift in the Federal Reserve's stance on interest rates, which would cause the Yen to strengthen against the dollar.

“There are currency ETFs that you can buy like the Euro trust the ticker fxe or the yust ticker fxy that will go up if those currencies strengthen against the dollar or the dollar weakens.”

The YouTuber suggests buying the CurrencyShares Japanese Yen Trust (FXY) to bet on a weakening dollar. The dollar has reached a 20-year high against the yen, but this strength is unsustainable due to political pressure, a weakening economy, and the long-term decline in the dollar's use as a reserve currency. FXY is down 18% and is expected to rebound on any dollar weakness.

“the currency shares japanese yen trust ticker fxy is down 18 since the dollar started strengthening in january the fund uses the futures and options market to give you that same dollar yen exposure and will rebound on any dollar weakness”