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Japanese Yen Outlook Remains Bullish

Japanese Yen Outlook Remains Bullish

David Rodriguez, Head of Product
ssi_usdjpy_body_Picture_3.png, Japanese Yen Outlook Remains Bullish

Retail FX trading crowds are now nearly their most aggressively net-long the US Dollar (ticker: USDOLLAR) against the Japanese Yen since the USDJPY traded near record-lows in February. The sharp jump in crowd buying underlines the fact that most believe the Japanese Yen is unlikely to challenge fresh highs (USDJPY lows). The Japanese Yen nonetheless stands to strengthen as the Bank of Japan withholds further monetary policy stimulus and markets turn risk-averse.

The retail trading crowd is often ‘right’ at the turns; the SSI showed traders were their most net-long USDJPY on record as the pair bottomed in February. Yet current extremes could just as easily be a precursor for continued declines, and we remain bearish the US Dollar against the Japanese Yen on such one-sided sentiment.

How do we interpret and trade with the SSI? Watch an FXCM Expo Presentation that explains the SSI.

--- Written by David Rodriguez, Quantitative Strategist for

To receive the SSI via e-mail and other reports from author David Rodríguez, e-mail subject line “Distribution List” to; Contact David via Twitter at

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.