FOREX ANALYSIS: Japanese Yen Forecast to Fall Further
USDJPY – Forex trading crowds have now turned net-short the US Dollar (ticker: USDOLLAR) against the Japanese Yen as the pair surges to fresh multi-year highs, and the aggressive shift towards crowd selling leaves us in favor of further USDJPY strength.
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 is always risk that the USDJPY may stall at recent peaks, we see 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.