Staying Long the US Dollar vs Yen, Aussie
Record positions in the USDJPY suggest that a bottom is near, and indeed I feel confident my long position will ultimately work in my favor.
The USDJPY position remains in force as long as the pair trades above ¥76. Profit targets start at ¥80 on the USDJPY.
I survived a drawdown in USD long in both the JPY and AUD, as yesterday I went long the US Dollar against the Aussie, (short AUDUSD from $1.0415). Our "Tidal Shift" system showed crowds have bought aggressively into AUDUSD weakness.
My stop on said position is above $1.0520 and I will look to take profits closer to the $1.0170 mark. Key support is seen at recent lows of $1.0370, and a break below would give me further confidence in the short position.
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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