Japanese Yen Outlook Unclear as Technical Patterns Warn of Reversal
Retail forex speculators remain heavily net-long the US Dollar (ticker: USDOLLAR) against the Japanese Yen, underlining the strength of the broader USDJPY downtrend. Yet short positions on the USDJPY jumped by a noteworthy 17 percent since last week—watering down our contrarian bearish trading bias.
We would need to see a much larger shift in USDJPY positioning to call for a longer-term turn in trend. Yet the short-term US Dollar breakout leaves risks for further strength. Key resistance remains at ¥80.50 and the next USDJPY moves could prove pivotal.
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--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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