Dollar in Danger of Major Break versus Japanese Yen
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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
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.