USDJPY – Retail forex crowds turned heavily long the Dollar versus the Yen as it traded into key support, and our focus remains on watching for sentiment extremes for trade opportunities.
Trade Implications – JPY Pairs: Two weeks ago we noted our positioning data showed retail traders at their most net-long USDJPY since it bottomed near ¥98 in October. And indeed, the low volatility environment leaves us watching for similar tests of major support and resistance. A rally into a potentially significant price ceiling at ¥102.25 would be the next important test for the Dollar.
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