I remain long the US Dollar (ticker: USDOLLAR) Against the Japanese Yen with an average price of ¥79.02, and the sharp USDJPY sell-off clearly is cause for concern.
I continue to believe that the USDJPY has set a long-term bottom , but in the short-term, we will need to see the pair hold above ¥79.30 to stay in this position.
At time of writing, the pair had bounced off of an intraday double-bottom at ¥79.80, and I'll keep a close eye on its next moves.
I'll remain long USDJPY until further notice, but I'll close half of the position if we drop below ¥79.30.
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com To receive the Speculative Sentiment Index and other reports from this author via e-mail, sign up to David’s e-mail distribution list via this link.
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