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Japanese Yen Sentiment Extreme

Japanese Yen Sentiment Extreme

David Rodriguez, Head of Product
ssi_usd-jpy_body_Picture_9.png, Japanese Yen Sentiment Extreme

Retail FX trading crowds remain their most aggressively net-long the US Dollar (ticker: USDOLLAR) against the Japanese Yen since the USDJPY traded near record-lows in February. Consistent crowd buying underlines the fact that most believe the Japanese Yen is unlikely to challenge fresh highs (USDJPY lows). Indeed, our Senior Technical Strategist believes the USDJPY may indeed bottom. Yet timing the reversal is always exceedingly difficult.

The level of total retail long interest on USDJPY is now at its highest levels since the pair bottomed and crossed above the ¥77 mark. Extreme sentiment can mark major turning points, and we’ll keep a close eye on near-term price action as reversal risk is high.

--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com

To receive the Speculative Sentiment Index and other reports from this author via e-mail, send a message with subject line “Distribution List” to drodriguez@dailyfx.com

Meet the DailyFX team in Las Vegas at the annual FXCM Traders Expo, November 2-4, 2012 at the Rio All Suite Hotel & Casino. For additional information regarding the schedule, workshops and accommodations, visit the FXCM Trading Expo website.

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

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