USDJPY – Retail short interest in the USDJPY remains near its highest levels on record, and we’ve remained consistently bearish the Japanese Yen (bullish USDJPY) for some time now. Positioning has remained mostly unchanged since last week, but we believe the overall USDJPY uptrend remains intact.
Trade Implications – USDJPY: Our retail sentiment-based trading strategies have recently sold the Japanese Yen against the Euro and Swiss Franc (long EURJPY and CHFJPY), but near-neutral positioning in the USDJPY means that they have not placed new trades against the Dollar. We may need to weight for a sharper breakout to see the systems once again get long the US Dollar against the Yen.
Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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