US Dollar at Risk of Larger Declines versus Japanese Yen
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USDJPY – Retail FX traders continue to hold USD-long positions against the Japanese Yen, and we would most often treat this as a contrarian signal that the USD/JPY could continue lower. Indeed traders have grown further net-long as the pair trades into fresh monthly lows.
We’ll watch how the US Dollar reacts near pivotal support starting near the ¥123.50 mark; a break below would open up a larger decline towards comparable support closer to ¥120.50.
See next currency section: AUDUSD - Australian Dollar Forecast to Hit Fresh 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.