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US Dollar Shows Signs of Life versus Yen

US Dollar Shows Signs of Life versus Yen

David Rodriguez, Head of Product
US Dollar Shows Signs of Life 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 have recently sold aggressively into US Dollar strength versus the Japanese Yen, and yet the same positioning data shows traders remain net-long the USD/JPY. The mixed signals give us a similarly unclear view on the future of Yen price action; it is difficult to advocate for buying into USD/JPY strength when most traders are long.

The “smart money” in large speculators remained heavily net-short USD/JPY into last week, and our longer-term bearish bias remains mostly intact. Of course, if the facts change we must change: a more sustained shift towards retail FX USD/JPY selling would quite likely lead us to call for a larger trend turnaround.

See next currency section:XAUUSD - Gold Prices Suddenly Suggest it’s Time to Sell

Written by David Rodriguez, Senior 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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