News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.



Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View more
FOREX ANALYSIS: Japanese Yen Forecast to Fall

FOREX ANALYSIS: Japanese Yen Forecast to Fall

David Rodriguez, Head of Product
ssi_usd-jpy_body_Picture_4.png, FOREX ANALYSIS: Japanese Yen Forecast to Fall

USDJPY – A surge in the US Dollar (ticker: USDOLLAR) versus the Japanese Yen has produced a similarly significant shift in retail forex trader sentiment.

According to our proprietary Speculative Sentiment Index data, the number of retail traders long the USDJPY has fallen near its lowest levels since July. A surge in short interest leaves net-positioning at a mere 2.21 traders long for every one short—compared to recent ratios above 5:1.

We maintain that the USDJPY set a significant bottom through September, and the recent move obviously lends weight to that argument. We remain bullish USDJPY and bearish the Japanese Yen, but we need to be wary of the potential for a JPY bounce amidst increasingly one-sided COT futures positioning.

--- Written by David Rodriguez, Quantitative Strategist for

To receive the Speculative Sentiment Index and other reports from this author via e-mail, sign up for his distribution list via this link.

New to FX markets? Learn more in our video trading guide.

Contact David via

Twitter at

Facebook at

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