US Dollar Finally Looks Like a Buy versus Japanese Yen
Receive the Weekly Speculative Sentiment Index report via PDF via David’s e-mail distribution list.
USDJPY –An aggressive shift towards USDJPY-selling and a break of critical resistance leaves us looking for further strength.
Trade Implications – JPY Pairs: Our Senior Strategist writes that ¥102.75 represented a critical test for the USDJPY, and the break higher leaves us focused on a run towards multi-year and YTD highs at ¥105.43. It’s admittedly risky to buy the US Dollar as it drops to fresh lows versus the Euro and other key counterparts. Yet a surge in the highly-correlated S&P 500 and Nikkei 225 suggests the USDJPY has further room to run. One of our sentiment-based trading strategies has gone long the Dollar from ¥102.36.
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
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.