US Dollar May Continue Lower versus Japanese Yen
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USDJPY –Retail FX trading crowds have grown heavily long the US Dollar versus the Japanese Yen, and a contrarian view of sentiment leaves us watching for further USD/JPY declines. The ratio of long to short positions in the USDJPY stands at 2.43 as 71% of traders are long, and indeed long positions are up 12.5% since last week while short positions are down 13.8% in the same stretch. Until we see a material turn in sentiment we foresee continued JPY gains (USD/JPY declines).
See next currency section: AUDUSD - Australian Dollar Forecast to Fall to Fresh Lows
Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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