Japanese Yen Bounce Leads Systems to Buy

DailyFX

View photo

.
ssi_usd-jpy_body_Picture_16.png, Japanese Yen Bounce Leads Systems to Buy

EURJPY – Remarkably choppy price action in the Japanese Yen has made for a difficult week of sentiment-based trading, and the next JPY moves may prove pivotal amidst strong market swings.

Trade Implications – EURJPY: Our purely sentiment-based Momentum2 system flipped direction on the EURJPY and sold from ¥128.15 then ¥127.26 as retail traders bought aggressively into the most recent sell-off. Yet there is distinct risk of getting chopped out of the recent short position as we’ve seen little follow-through on the recent JPY rally.

Elevated Japanese Yen volatility expectations emphasize that prices will remain volatile in the days ahead. And though we won’t give up on the EURJPY-short positions just yet, we think it prudent to keep risk tight as overall forex market conditions remain quite choppy.

Written by David Rodriguez, Quantitative Strategist for DailyFX.com

Download all of our Sentiment-based trading strategies free via an ongoing promo on FXCMApps.com

To receive the Speculative Sentiment Index and other reports from this author via e-mail, sign up for his distribution list via this link.

ssi_usd-jpy_body_1a_2.png, Japanese Yen Bounce Leads Systems to Buy

View how to automate the high-volatility Breakout2 Trading System via our previous article and webinar recording.

Auto trade the trend reversal-trading Momentum2system via our previous article and webinar recording.

Trade with strong trends via our Momentum1 Trading System and view an archived webinar

Use our counter-trend Range2 Trading system and view an archived webinar guide on automation

New to FX markets? Learn more in our video trading guide.

Contact David via

Twitter at http://www.twitter.com/DRodriguezFX

Facebook at http://www.Facebook.com/DRodriguezFX

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
Learn forex trading with a free practice account and trading charts from FXCM.

View Comments (0)