Japanese Yen Could Continue Lower versus US Dollar
Japanese Yen – Retail forex traders remain impressively long the US Dollar against the Japanese Yen—most are not usually this good at sticking to sharp trends. That said, a recent shift in sentiment still leaves us contrarian bullish USDJPY.
Trade Implications – USDJPY: Positioning is mostly unchanged since last week—as is the USDJPY itself. Surprisingly resilient retail trader sentiment has meant some tough trading for our top two strategies (Momentum2/”Tidal Shift” and Breakout2). Indeed, we see better sentiment-driven trading opportunities in other JPY pairs.
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.