USDJPY – Trading crowds recently grew their most bullish US Dollar (ticker: USDOLLAR) against the Japanese Yen since the pair set a significant bottom near the ¥76 mark, but a sharp Japanese Yen uptrend (USDJPY downtrend) gives us little reason to join the heavily one-sided crowd.
Our Speculative Sentiment Index-based trading strategies continue buying into Japanese Yen strength against the Euro, British Pound, and Australian Dollar with success. Yet the US Dollar has itself remained quite strong, and we have steered clear of USDJPY trades. In fact we see risks that the USDJPY continues to hold important support at ¥79.13 and trades higher through upcoming trade.
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--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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