Trade Implications – GBPJPY: Retail forex short positions in the GBPJPY have surged by more than 150 percent since last week—leaving total open short positions at their highest since April, 2011 when the GBPJPY was trading near ¥136.
Our sentiment-based Momentum2 strategy has accordingly gone long GBPJPY, USDJPY, and AUDJPY. We like those positions as long as crowds continue to buy into JPY weakness.
Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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