Japanese Yen Could Claw Back Losses versus US Dollar
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USDJPY – Recent shifts in retail FX trader sentiment suggest that the US Dollar could fall further versus the Japanese Yen through near-term price action.
Trade Implications – JPY Pairs: Long positions comprise approximately 60 percent of all open positions in our sample, and a contrarian view of sentiment points to further USDJPY weakness. This outlook is admittedly at odds with our calls for US Dollar strength versus the Euro, Sterling, and other counterparts.
Yet the Japanese Yen remains the best-performing currency in 2015, and our sentiment data suggests it can continue to correct higher (USDJPY lower) through the foreseeable future.
See next currency section: AUDUSD - Australian Dollar Remains a Sell until this Changes
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.