Japanese Yen Lags as S&P 500 Surges, Offers Attractive Trade Setup

DailyFX

- Don’t let US Dollar/Japanese Yen lull you into false sense of security

- The next Yen move could prove substantial, we’re watching key technical levels

- Underperformance relative to S&P 500 highlights potential for USDJPY to catch up

Follow any updates on the US Dollar and other currencies via this author’s e-mail distribution list.

US Dollar/Japanese Yen Exchange Rate far Underperforms Recent S&P 500 Gains

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forex_Japanese_Yen_trading_opportunity_as_S_and_P_surges_body_Picture_5.png, Japanese Yen Lags as S&P 500 Surges, Offers Attractive Trade Setup

Data source: Bloomberg

Chart source: R

Two Major Technical Levels Underline Important Price Floor and Ceiling to Watch

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forex_Japanese_Yen_trading_opportunity_as_S_and_P_surges_body_Picture_6.png, Japanese Yen Lags as S&P 500 Surges, Offers Attractive Trade Setup

Source: FXCM Trading Station Desktop, Prepared by David Rodriguez

Retail FX Indecision Points to Range Trading, but a Shift towards Selling Could Confirm Break

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forex_Japanese_Yen_trading_opportunity_as_S_and_P_surges_body_Picture_7.png, Japanese Yen Lags as S&P 500 Surges, Offers Attractive Trade Setup

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

Forex Correlations SummaryView forex correlations to the S&P 500, S&P Volatility Index (VIX), Crude Oil Futures prices, US 2-Year Treasury Yields, and Spot Gold prices.

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forex_Japanese_Yen_trading_opportunity_as_S_and_P_surges_body_Picture_8.png, Japanese Yen Lags as S&P 500 Surges, Offers Attractive Trade Setup

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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