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Japanese Yen Poised for Major Move Lower

David Rodriguez

- Japanese Yen buying has surged versus the British Pound

- US Dollar outlook unclear on recent shifts in sentiment

- Next moves pivotal, but clearest trades in Yen pairs

View individual currency sections:

EURUSD - It’s Time for the Euro to Tell us Where it’s Headed

GBPJPY - Japanese Yen Forecast to Fall Further (USDJPY, GBPJPY Rally)

GBPUSD - British Pound Trading Outlook Sees Big Change

AUDUSD - Australian Dollar Turn Lower Short Lived - We'll Cut Losses

XAUUSD - Gold Prices Stuck in Downtrend

SPX500 - S&P 500 at Little Risk of Major Turn Lower

Weekly Summary of Forex Trader Sentiment and Changes in Positioning

ssi_table_story_body_Picture_9.png, Japanese Yen Poised for Major Move Lower

A big build in Japanese Yen buying versus the US Dollar, British Pound, Euro, and Australian Dollar leaves us plainly in favor of further weakness (USDJPY, GBPJPY, EURJPY, AUDJPY strength).

In fact, forex retail crowds are now their most net-short GBPJPY in over 2 years.

Elsewhere recent shifts in sentiment have forced us to reconsider our calls for major US Dollar strength. With the Euro in particular we’ll need to see a material break lower and shift in sentiment to call for further declines.

Read full currency pair-by-currency pair rundowns in the links above, and follow future updates on retail sentiment and our trading strategies via my e-mail distribution list.

ssi_table_story_body_Picture_10.png, Japanese Yen Poised for Major Move Lower
ssi_table_story_body_Picture_11.png, Japanese Yen Poised for Major Move Lower

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--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com

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