Euro at Critical Turning Point versus Japanese Yen
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Trade Implications – EURJPY: Yesterday we noted that a USDJPY and EURJPY break lower could spark much larger FX market volatility as traders unwind Japanese Yen-short positions. Yet the Euro has held key support at ¥138 as the Dollar trades near ¥102. The fact that retail trader long interest in the EURJPY is now near multi-year highs may instead suggest that we’re at an important sentiment and price extreme. Barring a sharp jump in volatility, the one-sided sentiment suggests the EURJPY and USDJPY could trade higher.
See next currency section:EURUSD - Euro at Clear Risk of Bounce Near Key Support
--- 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.