Japanese Yen Outlook Uncertain as Traders Sell
USDJPY – Retail forex traders have bought into US Dollar weakness against the Japanese Yen, but near-neutral positioning gives us an admittedly mixed view on the range-bound USDJPY.
Trade Implications – USDJPY: Retail crowds have proven remarkably indifferent to recent moves in the USDJPY, and the fact that most are currently long is admittedly confusing. Our trader sample has historically shown most buy into strength and sell into weakness. The disconnect between price action and our Speculative Sentiment Index has made for mediocre SSI-based USDJPY trades, and that makes our short-term trading bias unclear.
Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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