Japanese Yen Forecast to Fall Further
USDJPY – Retail forex traders remain aggressively net-long the US Dollar (ticker: USDOLLAR) versus the Japanese Yen, but the number of traders long per every one short is actually at its lowest levels in three months.
In fact, the number of retail traders short USDJPY surged 86 percent since last week and currently nears year-to-date highs.
We have argued that the USDJPY set a significant bottom through September, and indeed the continued shift in trader sentiment suggests that September lows will continue to hold. Our Senior Technical Strategist argues that USDJPY trading above ¥79.21 gives further reason to get bullish towards further highs.
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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