Dollar Continues to Offer Trade Setups versus Yen
Receive the Weekly Speculative Sentiment Index report via PDF via David’s e-mail distribution list.
USDJPY – Retail forex traders remain heavily long the US Dollar versus the Japanese Yen, and extremely low volatility makes buying at support our preferred strategy until further notice.
Trade Implications – JPY Pairs: Last week we noted that our positioning data showed retail traders at their most net-long the Dollar versus the Japanese Yen since it bottomed at ¥98 in October. Positioning has since moderated as traders take profits on some of those long positions.
We expect that the trading crowd will continue to catch important turns as extremely low volatility favors mean-reversion trading strategies. We’re looking to buy near support near ¥100.80 and 101, while resistance is well-defined at ¥102.25 and 102.75.
See next currency section:AUDUSD - Australian Dollar Likely Set Important Price Top
Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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