Dollar Poised to Trade off of Lows versus Yen
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Trade Implications – JPY Pairs: Retail traders are heavily net-long the USDJPY, and in most conditions we would go against them and sell. Yet data shows that the crowd on average does well in slow-moving markets. FX options markets show that USDJPY volatility prices/expectations trade at record-lows. Until that changes we’ll remain in favor of joining the crowd and buying the Dollar at key support versus the Yen.
See next currency section:AUDUSD - Australian Dollar Presents Sell Opportunity
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.