Japanese Yen – Retail forex traders remain impressively long the US Dollar against the Japanese Yen—most are not usually this good at sticking to sharp trends. That said, a recent shift in sentiment still leaves us contrarian bullish USDJPY.
Trade Implications – USDJPY: Positioning is mostly unchanged since last week—as is the USDJPY itself. Surprisingly resilient retail trader sentiment has meant some tough trading for our top two strategies (Momentum2/”Tidal Shift” and Breakout2). Indeed, we see better sentiment-driven trading opportunities in other JPY pairs.
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.
Contact David via
Twitter at https://www.twitter.com/DRodriguezFX
Facebook at http://www.Facebook.com/DRodriguezFX