Japanese Yen and US Dollar Forecast to Rally Further on S&P 500 Declines
Sharp Japanese Yen gains have led to similarly aggressive forex crowd JPY selling, giving us strong contrarian bias to buy into Yen strength. Indeed, three of our Speculative Sentiment Index-based trading strategies remain short the British Pound and US Dollar against the Japanese Yen. Incredible forex market volatility makes short-term forecasts especially difficult, but current sentiment extremes suggest that the JPY may continue to strengthen amidst financial market upheaval. The US Dollar is similarly forecast to continue gaining against the Canadian Dollar and British Pound, giving our SSI trading strategies a distinctively short ‘risk’ trading bias.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.