US Dollar Might have Topped versus Yen
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USDJPY – The US Dollar has been nearly unstoppable versus the Japanese Yen, but early signs suggest Dollar gains may slow or even reverse through the near future.
Trade Implications – JPY Pairs: Our data shows open short positions outnumber those long by a modest 1.1 to 1, and a contrarian view of crowd sentiment leaves us in favor of further USDJPY gains. Yet total long positions have jumped 23 percent since last week, while short positions are down 4 percent.
It’s early, but a more aggressive shift towards retail trader buying would turn us bearish on the recently high-flying Dollar/Yen exchange rate.
See next currency section: AUDUSD - Australian Dollar Remains a Sell until this Changes
Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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