US Dollar’s Time to Shine Against All Except Japanese Yen

• EURUSD – Euro May Outperform AUD, but not USD
• GBPUSD – British Pound Offers Range Trading
• USDJPY – US Dollar to Fall versus Japanese Yen
• USDCHF – Swiss Franc Outlook Uncertain
• USDCAD – Canadian Dollar Forecast Cautiously Bearish
• GBPJPY – British Pound Likely to Pull Back versus JPY

A major shift in Japanese Yen sentiment suggests it may claw back losses against the US Dollar (ticker: USDOLLAR), but an even-larger move in the US S&P 500 and broader financial markets suggest the USD may have bottomed versus the Euro and British Pound.

Last week we called for a potential EURUSD and GBPUSD top. And though we were clearly early in our calls on the Euro, the turn in the financial market tide could be what Dollar bulls have expected.

A critical point is whether the Dow Jones FXCM Dollar Index trades above critical 8-month highs. Else we believe that the Japanese Yen may have set an important short-term bottom, and our short-term USDJPY bearish remains firmly bearish absent a turn in market sentiment.

View an FXCM Expo presentation on the Speculative Sentiment Index for better understanding on how we use it in our trading.

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--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com

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