Further Near-term Gains in Questions for EUR/JPY
EURJPY – The EURJPY has pulled back from recent highs, and the retail trading crowd isn’t exhibiting the type of behavior that would give confidence in a move higher.
Trade Implications – The EURJPY remains above the psychologically significant round ¥140.00 figure, but that may soon be broken as the market loses confidence in Japanese monetary policy. Indeed, retail traders may be suggesting a similar line of thought, too: positioning has moderated substantially over the past few weeks, and there’s no inclination that the retail crowd is ready to call a top just yet with open shorts significantly lower than the levels seen in November. A further erosion in price alongside a flip in sentiment would be the ideal scenario for a top to be called.
--- Written by Christopher Vecchio, Currency Analyst
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