Japanese Yen Pullback Sets us Up for USDJPY Long
Trade Implications – USDJPY: Forex trading crowds were recently at their most long USDJPY since the pair set a major low through September, 2012, and the recent shift in price and positions suggests we may be at a similarly significant turning point.
We might have a “tradable low” in place as our sentiment-based Momentum2 strategy has now gone long from ¥98.64, and there’s likewise evidence of a short-term bullish base in the USDJPY. The next move is pivotal, and a break above major resistance at 99.20 and 100 would help confirm a larger turnaround.
Written by David Rodriguez, Quantitative Strategist for DailyFX.com
Automate our SSI-based trading strategies via Mirror Trader free of charge
To receive the Speculative Sentiment Index and other reports from this author via e-mail, sign up for his distribution list via this link.
Contact David via
Twitter at http://www.twitter.com/DRodriguezFX
Facebook at http://www.Facebook.com/DRodriguezFX
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.