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USDJPY –Retail FX traders continue buying into US Dollar weakness versus the Japanese Yen, and a contrarian view of crowd sentiment keeps us looking for fresh USDJPY lows.
Trade Implications – JPY Pairs: The Dollar/Yen exchange rate remains in a tight trading range. And yet clearly one-sided positions and an upcoming cyclical turn window in USDJPY suggest that a break lower is possible. Trading below ¥101.35 would confirm the breakdown and likely spark a larger USDJPY sell-off.
See next currency section:EURJPY - Euro Looks to Break Higher Against Yen
Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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