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Can USDJPY Finally Trade Higher? 3 Critical Factors we’re Watching

By , Quantitative Strategist
01 April 2014 14:35 GMT

- US Dollar breaks key resistance versus Japanese Yen, but not out of woods yet

- Strong forex correlations to US Treasuries and the Nikkei 225 warn of downside

- Retail FX Trader Sentiment Not yet Supportive of USDJPY Gains

Follow any updates on the Dollar, Yen, and other currencies via this author’s e-mail distribution list.

US Dollar Making a Run above Key Resistance versus Japanese Yen

forex-is-USDJPY-break-worth-following---3-key-factors_body_Picture_5.png, Can USDJPY Finally Trade Higher? 3 Critical Factors we’re Watching

Source: FXCM Trading Station Desktop, Prepared by David Rodriguez.

USDJPY Correlation to US 10-Year Treasury Yield Trades Near Record-Strength

forex-is-USDJPY-break-worth-following---3-key-factors_body_Picture_6.png, Can USDJPY Finally Trade Higher? 3 Critical Factors we’re Watching

Data source: Bloomberg, Prepared by David Rodriguez

US 10-Year Treasury Yield Failing at Key Levels

forex-is-USDJPY-break-worth-following---3-key-factors_body_Picture_7.png, Can USDJPY Finally Trade Higher? 3 Critical Factors we’re Watching

Source: FXCM Trading Station Desktop, Data Source: Yahoo Finance, Prepared by David Rodriguez.

Japanese Nikkei 225 has not Broken Higher, Remains near Long-term Resistance

forex-is-USDJPY-break-worth-following---3-key-factors_body_Picture_8.png, Can USDJPY Finally Trade Higher? 3 Critical Factors we’re Watching

Source: FXCM Trading Station Desktop, Data Source: Yahoo Finance, Prepared by David Rodriguez.

Retail FX Trading Crowds Remain Long the USDJPY

forex-is-USDJPY-break-worth-following---3-key-factors_body_Picture_9.png, Can USDJPY Finally Trade Higher? 3 Critical Factors we’re Watching

Data source:FXCM Execution Desk data, Prepared by David Rodriguez

Follow any updates on the Dollar, Yen, and other currencies via this author’s e-mail distribution list.

Forex Correlations Summary

View forex correlations to the S&P 500, S&P Volatility Index (VIX), Crude Oil Futures prices, US Treasury Yields, and Spot Gold prices.

forex-is-USDJPY-break-worth-following---3-key-factors_body_Picture_10.png, Can USDJPY Finally Trade Higher? 3 Critical Factors we’re Watching

Data source: Bloomberg. Chart source: R SEE GUIDE ON READING THE ABOVE CHART

--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com David specializes in automated trading strategies. Find out more about our automated sentiment-based strategies on DailyFX PLUS.

Contact and follow David via Twitter: https://twitter.com/DRodriguezFX

01 April 2014 14:35 GMT