US Dollar Predicted to Test Highs versus Yen
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USDJPY –A substantial shift in retail FX trader sentiment warns that the US Dollar may test key peaks versus the Japanese Yen.
Trade Implications – JPY Pairs:Our retail trader sample shows approximately 55 percent of traders are currently short the USDJPY, and a contrarian view of crowd sentiment leaves us looking for further Dollar gains. The key caveat is that the same data showed nearly two-thirds of traders were short as the Dollar first made its major break higher through early September. The important moderation warns that the USD rally is getting long in the tooth and momentum may slow.
See next currency section:AUDUSD - Australian Dollar Remains in Clear Downtrend
Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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