US Dollar Expected to Gain Further versus Japanese Yen
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USDJPY – Retail FX traders continue to hold USD-long positions against the Japanese Yen, and this would normally act as contrarian signal that USD/JPY could decline. Yet we have seen sentiment shift notably since last week; long positions are down 7 percent while short positions are up 8 percent.
A recent look at volume-based technical levels suggests that the USDJPY may indeed continue higher—especially as retail FX traders slowly but surely flip directions and are now close to holding a net-short positions.
See next currency section:AUDUSD - Australian Dollar May be at Brink of Much Larger Reversal
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.