Yen is Clearly Oversold, but we expect further Weakness
Receive the Weekly Speculative Sentiment Index report via PDF via David’s e-mail distribution list.
USDJPY –Retail FX traders in our proprietary sample remain net-short the USDJPY since it traded above ¥108 through late October. Until we see a lasting shift we’ll maintain our contrarian calls for USDJPY strength.
Trade Implications – JPY Pairs:Crowd positions in both US Dollar and Japanese Yen exchange rates have moderated since last week as major currencies have mostly consolidated. In the USDJPY this leaves the net retail position at a near-neutral 52 percent short—not a strong trading signal by most measures. And yet until we see a sustained shift towards USDJPY-buying we see little reason to abandon our broader US Dollar-bullish and Japanese Yen-bearish trading biases.
See next currency section:AUDUSD - Australian Dollar Targets Fresh Lows
Written by David Rodriguez, Quantitative Strategist for DailyFX.com
Automate our SSI-based trading strategies via Mirror Trader free of charge
To receive the Speculative Sentiment Index and other reports from this author via e-mail, sign up for his distribution list via this link.
Contact David via
Twitter at http://www.twitter.com/DRodriguezFX