British Pound Sterling at Extremes versus Japanese Yen
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GBJPY – Retail forex traders are their most aggressively short the British Pound versus the Japanese Yen since it traded significantly higher in late 2013. The potential for a sentiment extreme warns of reversal.
Trade Implications – GBPJPY: The Sterling trades at critical resistance against both the US Dollar and Japanese Yen, and in both the GBPUSD and GBPJPY we see retail traders are heavily short. Sentiment and price extremes are only clear in hindsight, but we haven’t seen these levels of selling since important turns in the GBP. A GBPJPY break below key congestion support at ¥173.60 would turn our focus lower.
See next currency section:EURUSD - Euro Remains at Risk as Dollar May Bounce
--- 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.