US Dollar and Japanese Yen Likely to Fall Further
Continued Japanese Yen and US Dollar declines have been met with fairly aggressive crowd buying, giving contrarian signal to sell into USD and JPY declines. We previously claimed that initial signs of sentiment extremes warned of a potential Euro/US Dollar top, but renewed rallies have dashed hopes of an important turnaround. For the Japanese Yen, short interest now stands at its highest levels since the pair traded above the 85.00 mark in September, 2010. Short-term momentum and crowd sentiment favors continued US Dollar and Japanese Yen declines.
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