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USDJPY – The US Dollar continues to hit fresh highs versus the Japanese Yen, and extremely one-sided trader positioning leaves us firmly in favor of further USDJPY gains.
Trade Implications – JPY Pairs: The recent Dollar breakout versus the Yen leaves us plainly reminiscent of the breakout we saw in November of last year—both in severity of the move and the reaction from our retail FX trader sample. In both instances, the USDJPY consolidated for months on end before finally making a move. And just as importantly, the move started far faster and extended further than anyone had anticipated. As long as crowds continue selling, we’ll continue to call for further USDJPY strength.
See next currency section:AUDUSD - Australian Dollar Breakdown Looks like the Real Deal
Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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