I remain long the US Dollar (ticker: USDOLLAR) Against the Japanese Yen with an average price of ¥79.02, and I'm optimistic the JPY will continue to decline through the foreseeable future.
As I wrote last week, I think the USDJPY has set a long-term bottom and may continue higher through the foreseeable future. A key point of contention for forex traders is whether or not US Treasury Yields have similarly bottomed, and it will be critical to watch US Dollar trading conditions in the week ahead.
I'll remain long USDJPY until further notice, but I’ll close half of the position if we trade below key short-term support at ¥79.00.
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com To receive the Speculative Sentiment Index and other reports from this author via e-mail, sign up to David’s e-mail distribution list via this link.
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