Yen May Strengthen against USD, EUR, GBP, AUD
USDJPY – Trading crowds are near their most bullish the US Dollar (ticker: USDOLLAR) against the Japanese Yen since the pair set a significant bottom near the ¥76 mark, and our contrarian Speculative Sentiment Index calls for further losses. Indeed, our SSI-based “Trend Follower” trading strategy established a USDJPY short position from ¥79.13 and calls for further losses.
Our sentiment-based strategies continue buying the Japanese Yen against the Euro, British Pound, Australian Dollar, and now US Dollar. Past performance is NOT indicative of future returns. Yet sharp moves across major exchange rates in our opinion shows our volatility-friendly Breakout strategies may continue to do well on JPY pairs.
How do we interpret the SSI? Watch an FXCM Expo Presentation that explains the SSI.
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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