British Pound Likely to Rally Versus Yen
Retail traders remain long the British Pound against the Japanese Yen, but a more recent shift in sentiment shows that crowds have most recently sold into GBPJPY strength. The turn in crowd behavior suggests that the GBPJPY may have set a short-term bottom, and indeed our SSI-based “Tidal Shift” strategy went long GBPJPY from ¥124.65. We believe that such a trade looks attractive as crowds continue selling into GBPJPY strength.
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--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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