Japanese Yen No Longer the Only Game in Town
Japanese Yen – Forex trading crowds remain steadily long the USDJPY as the pair trades near significant peaks. This is admittedly unusual—traders are not often long into such strong uptrends. Our SSI-based forecast is unclear.
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.