Japanese Yen May Yet Trade Higher versus Euro
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Trade Implications – JPY Pairs: Retail FX traders have bought aggressively into recent Euro weakness versus the Japanese Yen, and our sentiment-based Momentum2 strategy has done well selling into EURJPY declines. Total crowd long positions surged by 40 percent since last week, while short interest fell by 10 percent.
We would ideally see the EURJPY trade below key support in order to sell further into declines, but the sentiment shift favors Yen strength and Euro weakness.
Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.