Dollar at Make-or-Break Levels versus the Japanese Yen
Receive the Weekly Speculative Sentiment Index report via PDF via David’s e-mail distribution list.
Trade Implications – JPY Pairs: The Yen stands at a potential crossroads as it trades at a confluence of Fibonacci, trendline, and 200-day SMA support. If it does indeed break lower, things could get ugly quickly as recent CFTC Commitment of Traders data shows that large futures speculators remain heavily short JPY futures (long USDJPY).
The fact that retail traders their most long USDJPY since its August low is in itself a sign of potential price and sentiment extreme. But a break of major support would clearly favor further USDJPY downside.
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.