All Eyes on Fed as US Dollar Near Major Support versus Japanese Yen

DailyFX

Video Summary:

- US Dollar trades at critical support versus the Japanese Yen

- Heavily one-sided retail FX trader sentiment underlines downside USDJPY risk

- Upcoming Fed rate decision critical as pair extremely correlated to US yields

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US Dollar Continues to Trade Near Key Lows Versus Japanese Yen

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forex-Japanese-Yen-trading-forecast-versus-US-Dollar_body_Picture_5.png, All Eyes on Fed as US Dollar Near Major Support versus Japanese Yen

Source: FXCM Trading Station Desktop, Prepared by David Rodriguez

Retail FX Sentiment Shows Traders are Heavily Long USD versus the Yen

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forex-Japanese-Yen-trading-forecast-versus-US-Dollar_body_Picture_6.png, All Eyes on Fed as US Dollar Near Major Support versus Japanese Yen

Source: FXCM Execution Desk Data, Chart Prepared by David Rodriguez

Strong link between USDJPY and US Treasury Yields Leaves Focus on FOMC Meeting

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forex-Japanese-Yen-trading-forecast-versus-US-Dollar_body_Picture_7.png, All Eyes on Fed as US Dollar Near Major Support versus Japanese Yen

Data source: Bloomberg, Prepared by David Rodriguez

Forex Correlations Summary

View forex correlations to the S&P 500, S&P Volatility Index (VIX), Crude Oil Futures prices, US Treasury Yields, and Spot Gold prices.

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forex-Japanese-Yen-trading-forecast-versus-US-Dollar_body_Picture_8.png, All Eyes on Fed as US Dollar Near Major Support versus Japanese Yen

Data source: Bloomberg. Chart source: R SEE GUIDE ON READING THE ABOVE CHART

--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com David specializes in automated trading strategies. Find out more about our automated sentiment-based strategies on DailyFX PLUS.

Contact and follow David via Twitter: https://twitter.com/DRodriguezFX

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
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