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USDJPY – The retail forex crowd continues buying the US Dollar across the board, and the potential for an important sentiment extreme warns that the USDJPY could soon move higher.
Trade Implications – JPY Pairs: Traders are now their most net-long the Greenback versus the Yen since it started its major run higher through early November. That in itself isn’t enough of a reason to look higher in the USDJPY exchange rate, but an important cyclical turn window warns that the pair may be coiling up for its next major move. A broader USD-bullish forecast leaves us looking to the topside; a break above ¥102.75 would confirm our near-term bullish forecast.
Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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