ssi_usd-jpy_body_Picture_11.png, Japanese Yen Reversal Well Underway

USDJPY – Retail forex traders have bought into US Dollar weakness versus the Japanese Yen, and the noteworthy build in positions has led our sentiment-based strategies to sell into USDJPY weakness.

Trade Implications – USDJPY: Our Breakout-based and trend-following strategies continue to buy the Japanese Yen versus the USD, Euro, British Pound, and Australian Dollar (short USDJPY, EURJPY, GBPJPY, AUDJPY). Two weeks ago we wrote of evidence of a popular sentiment extreme: the Wall Street Journal wrote a headline that read “US Funds Score Big by Betting Against Yen.” That marked the top for JPY crosses almost exactly, and we remain bearish until we see real signs of short-term exhaustion.

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.

ssi_usd-jpy_body_1a_2.png, Japanese Yen Reversal Well Underway

Trade with the purely SSI-based Momentum1 strategy: article, webinar recording

Automate our sentiment-based Momentum2 system: article, webinar recording

Automate the our high-volatility sentiment trading Breakout2 strategy: article and webinar recording.

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

Contact David via

Twitter at

Facebook at