Japanese Yen Reversal Well Underway
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 DailyFX.com
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.