Japanese Yen Rallies Could Continue
USDJPY –Retail sentiment remains extremely one-sided on the US Dollar against the Japanese Yen as the total of traders long is a massive 8.32 times than the number of traders short. Indeed, trading crowds have remained aggressively long the US Dollar against the Japanese Yen since June, 2010 as the pair traded near the 90.00 mark. Such one-sided sentiment has given consistent contrarian signal that the pair could continue its decline.
Until we see significant signs of crowd capitulation, our Speculative Sentiment Index will continue to call for US Dollar losses against the high-flying Japanese Yen.
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