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Dollar in Danger of Major Break versus Japanese Yen

Dollar in Danger of Major Break versus Japanese Yen

David Rodriguez, Head of Product
Dollar in Danger of Major Break versus Japanese Yen

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USDJPYForex trading crowd remain heavily long the Dollar versus the Japanese Yen as it consolidates near critical levels. The next move may prove decisive as sentiment and price near extremes.

Trade Implications – JPY Pairs: Last week we wrote in favor of getting long USDJPY against the lows as extremely low forex volatility combined with one-sided sentiment to favor a bounce. Yet the Dollar’s failure to bounce significantly off of key lows warns of a potential breakdown. A break below ¥101.35 would likely invite larger declines—in which case we would favor going against the crowd and selling into USDJPY losses.

See next currency section:AUDUSD - Australian Dollar Rally at Risk at these Levels

Written by David Rodriguez, Quantitative Strategist for DailyFX.com

Dollar in Danger of Major Break versus Japanese Yen

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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

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