New multi-year low for the VIX | 25 April 2023

USDJPY trading plan:

Implied volatility, as measured by the Chicago Board Options Exchange Volatility Index, closed yesterday at 16.9, its lowest closing level since mid-November 2021. The VIX provides a real-time update of expectations for volatility on the S&P 500 over the next 30 days. The VIX represents implied volatility derived from the aggregate values of a weighted basket of S&P 500 put and call options over a range of strike prices. The VIX is often referred to as the “fear gauge” because generally, a rising VIX is associated with increased fear in the marketplace and falling stock prices, while a declining VIX is associated with decreased investor fear and rising stock prices. This is a good signal for the stock market and USDJPY, which has a correlation with the shares.

Investment idea: buy 133.95 and take profit 134.70.