US Dollar May Have Turned versus Japanese Yen
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USDJPY –Retail FX traders remain heavily long the US Dollar versus the Japanese Yen, and a contrarian view of crowd sentiment would normally leave us calling for USD losses. Yet a fairly significant week-over-week change in positions suggests that the pair may be in the midst of an important reversal. Long positions have fallen 25 percent while short positions are up 17 percent. A sustained shift would leave us in favor of buying into USD/JPY gains.
See next currency section:AUDUSD - Australian Dollar Likely to test Key Lows
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.