FOREX ANALYSIS: Japanese Yen Forecast Remains Bearish
USDJPY – Forex trading crowds remain long the US Dollar (ticker: USDOLLAR) against the Japanese Yen, but the substantive shift in positioning in the past 3 months leaves us mostly in favor of USDJPY gains.
Our sentiment-based trading strategies have consistently sold the Japanese Yen versus the USD, Euro, British Pound, Australian Dollar, and other counterparts through recent price action. And though there are signs that the USDJPY may be stalling at recent peaks, there is little reason to call for a substantive Yen reversal.
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.