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US Dollar Forecast to Fall Further versus Yen

US Dollar Forecast to Fall Further versus Yen

David Rodriguez, Head of Product
US Dollar Forecast to Fall Further versus Yen

Why and how do we use the SSI in trading? View our video and download the free indicator here

USDJPY– Retail FX traders remain extremely net-long the US Dollar versus the Japanese Yen, and a contrarian view of crowd sentiment points to further USD/JPY weakness. Indeed, our data shows there are nearly 3 open retail positions long USD/JPY for every 1 short—over 70 percent are long. .

Traders have remained net-long since the pair traded near ¥120 through late 2014. In that stretch the USD/JPY traded to decade highs near ¥126 but ultimately tumbled to recent lows below ¥108. Until we see a marked and sustained shift towards crowd selling, we see little reason to abandon our long-standing bearish trading bias for the USD/JPY.

See next currency section: XAUUSD - Gold Price Likely to hit Key Peaks

Written by David Rodriguez, Quantitative Strategist for DailyFX.com

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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.

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