Trade FOREX with FXCM

  • Award-Winning Platform
  • 24/7 Customer Support
  • Trade Directly on Charts
  • Free $50K Practice Account

Resources

Dollar at Make-or-Break Levels versus the Japanese Yen

By , Quantitative Strategist
03 October 2013 15:00 GMT
ssi_usd-jpy_body_Picture_11.png, Dollar at Make-or-Break Levels versus the Japanese Yen

Receive the Weekly Speculative Sentiment Index report via PDF via David’s e-mail distribution list.

Japanese Yen – Retail forex traders remain aggressively long the US Dollar against the Japanese Yen, and real risk of a USDJPY breakdown warns against joining them.

Trade Implications – JPY Pairs: The Yen stands at a potential crossroads as it trades at a confluence of Fibonacci, trendline, and 200-day SMA support. If it does indeed break lower, things could get ugly quickly as recent CFTC Commitment of Traders data shows that large futures speculators remain heavily short JPY futures (long USDJPY).

The fact that retail traders their most long USDJPY since its August low is in itself a sign of potential price and sentiment extreme. But a break of major support would clearly favor further USDJPY downside.

Written by David Rodriguez, Quantitative Strategist for DailyFX.com

ssi_usd-jpy_body_Picture_8.png, Dollar at Make-or-Break Levels versus the Japanese Yen

Automate our SSI-based trading strategies via Mirror Trader free of charge

To receive the Speculative Sentiment Index and other reports from this author via e-mail, sign up for his distribution list via this link.

Contact David via

Twitter at http://www.twitter.com/DRodriguezFX

Facebook at http://www.Facebook.com/DRodriguezFX

provides forex news and technical analysis on the trends that influence the global currency markets.
Learn forex trading with a free practice account and trading charts from

03 October 2013 15:00 GMT