Forex Analysis: May Close USDJPY Long
My weekly report on forex trader positioning nonetheless warns that the USDJPY could continue lower as crowds buy the recent dip. Congestion support at ¥79.30 remains pivotal, and I'll close half of the position if we drop below.
Crowd sentiment otherwise suggests that the Euro set a significant top versus the US Dollar, and indeed I'd like to sell any short-term EURUSD bounces. Previous congestion at $1.2820 may be an attractive area at which to sell. If we reach that, important price congestion at $1.2880 would be a good area at which to place a stop loss order.
--- 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.
Contact David via Twitter at http://www.twitter.com/DRodriguezFX
Facebook at http://www.Facebook.com/DRodriguezFX
Meet the DailyFX team in Las Vegas at the annual FXCM Traders Expo, November 2-4, 2012 at the Rio All Suite Hotel & Casino. For additional information regarding the schedule, workshops and accommodations, visit the FXCM Trading Expo website.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.