US Dollar may Break Down versus Japanese Yen
Receive the Weekly Speculative Sentiment Index report via PDF via David’s e-mail distribution list.
USDJPY – Retail FX traders remain heavily long the US Dollar versus the Japanese Yen, and a contrarian view of crowd sentiment leaves us calling for further weakness.
Trade Implications – JPY Pairs: Our trader sample shows that open USDJPY long positions outnumber those short by 1.7 to 1. Last week that ratio was briefly above 2:1 and as such it’s worth noting that sentiment has moderated. Yet positions remain one-sided, and until this changes we will maintain our contrarian view in favor of a USDJPY breakdown.
See next currency section: AUDUSD - Australian Dollar Likely Set Important Low
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
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.