US Dollar and Japanese Yen Sentiment on Verge of Something Big

DailyFX

- Retail forex traders are most short Dollar and JPY since November EURJPY and EURUSD lows

- Critical question is whether next step is uptrend or this is a mere correction

- Watch video above and see charts below for full rundown on next market moves

The US Dollar and Japanese Yen have seen substantial swings in forex trading sentiment, but is this the start of a larger uptrend or mere correction?

Retail Forex Traders Now at Least short EURUSD since November Bottom

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forex_trading_us_dollar_and_japanese_yen_uptrends_body_Picture_5.png, US Dollar and Japanese Yen Sentiment on Verge of Something Big

Source: FXCM Execution Desk Data

Forex Trading Crowds Have Similarly Sold Aggressively into Yen Strength versus Euro

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forex_trading_us_dollar_and_japanese_yen_uptrends_body_Picture_6.png, US Dollar and Japanese Yen Sentiment on Verge of Something Big

Source: FXCM Execution Desk Data

Low Forex Volatility Prices Suggest few Betting on/Hedging against Major USD and JPY moves

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forex_trading_us_dollar_and_japanese_yen_uptrends_body_Picture_7.png, US Dollar and Japanese Yen Sentiment on Verge of Something Big

Data source: Bloomberg, Chart source: DailyFX

Take a look at major currency drivers below and sign up for future updates via this author’s e-mail distribution list.

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_trading_us_dollar_and_japanese_yen_uptrends_body_Picture_8.png, US Dollar and Japanese Yen Sentiment on Verge of Something Big

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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