Dollar Rally Stalls versus Yen - What Could Force a Break Higher?
- May need to see US yields break higher for next USDJPY surge
- Clearly one-sided sentiment nonetheless leaves us looking for gains
The US Dollar trades at major resistance versus the Japanese Yen. What could force a break, and how might we trade it?
Follow any updates on the Japanese Yen, US Dollar, and other currencies via this author’s e-mail distribution list.
US Dollar Rally Stalls at Important 12-Year Trendline versus Japanese Yen
Source: FXCM Trading Station Desktop, Prepared by David Rodriguez.
Strong USDJPY Correlation to US Treasury Yields Highlights Potential Catalyst
Data source: Bloomberg, Prepared by David Rodriguez
US Yields Nonetheless Hitting Major Resistance - Likewise Show Reversal Risk
Source: TradingView.com, Prepared by David Rodriguez
Extremely One-sided Sentiment Nonetheless leaves us in Favor of USDJPY Strength
Source: CFTC Commitment of Traders data, Prepared by David Rodriguez.
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.