Forex Analysis: Japanese Yen Forecast to Fall Further
USDJPY – Choppy moves in the US Dollar/Japanese have produced similarly indecisive moves in forex trading crowd sentiment, and our sentiment-based trading bias is somewhat unclear given sideways moves. Retail traders are effectively flat as our Speculative Sentiment Index shows there are 1.04 traders short for every one that is long.
Trade Implications – USDJPY: Our retail sentiment-based trading strategies are currently short USDJPY as crowds initially bought into recent weakness. This author likewise bought the JPY on the risk of short-term correction, but a daily close above ¥90 would suggest that the recent correction was just that—a minor pullback amidst a much stronger uptrend.
--- 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.