Dollar Nears Potentially Significant Breakdown versus Japanese Yen
- Strong link to yields suggests recent moves in bonds favor the downside
- Watch for any sudden breakdowns on acceleration below ¥101.50
The US Dollar trades at potentially critical levels versus the Japanese Yen. Why might the USDJPY tumble to fresh lows, and how might we trade it?
Dollar Trading at Potentially Critical Levels versus the Japanese Yen
Source: FXCM Trading Station Desktop, Prepared by David Rodriguez.
Correlation to US Treasury Yields Underlines Key Risk to USDJPY
Data source: Bloomberg, Prepared by David Rodriguez
US 10-Year Treasury Yield Testing Significant Support as Moving Averages Show Bearish Shift
Source: TradingView.com, Prepared by David Rodriguez
Large Speculative Traders Remained heavily Long USDJPY, Warning of Sentiment Extreme
Source: CFTC Commitment of Traders data, Prepared by David Rodriguez.
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Forex Correlations Summary
Data source: Bloomberg. Chart source: R SEE GUIDE ON READING THE ABOVE CHART
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com David specializes in automated trading strategies. Find out more about our automated sentiment-based strategies on DailyFX PLUS.
Contact and follow David via Twitter: https://twitter.com/DRodriguezFX
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.