US Dollar Remains a Sell versus Japanese Yen
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USDJPY– Retail FX traders remain extremely long the US Dollar versus the Japanese Yen, and a contrarian view of crowd positioning acts as signal the USD/JPY may continue lower. Our data shows there are currently over 4 positions long for every short—near multi-year extremes. A critical question is whether the pair stands to reverse at the ¥100 mark.
Our technical forecast calls for further USD/JPY weakness as long as the pair holds below key resistance near ¥103. It would likely take a substantive price reversal to force a comparable shift in sentiment, and until that happens we will continue to call for USD/JPY declines.
See next currency section: S&P - US S&P 500 Looks to Rally Even Further
Written by David Rodriguez, Senior Strategist for DailyFX.com
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.