DailyFX.com -
Key Factors Favor a Much Larger USDJPY Breakout

Receive the Weekly Speculative Sentiment Index report via PDF via David’s e-mail distribution list.

USDJPY Retail FX traders have bought aggressively into the recent USDJPY pullback, and a contrarian view of crowd sentiment suggests the pair will remain below key range highs near ¥103.

Trade Implications – JPY Pairs: Last week we noted that a sharp shift towards crowd selling pointed to a Dollar break above ¥103, but recent price action clearly shows the pair has had difficulty holding gains. Given the more recent moves in the USDJPY and trader sentiment, we see little reason to expect that the pair will break substantially above resistance or below support. The spike-low at ¥101.80 represents an important price floor.

See next currency section:AUDUSD - Australian Dollar Outlook Remains Bearish

Written by David Rodriguez, Quantitative Strategist for DailyFX.com

Key Factors Favor a Much Larger USDJPY Breakout

Automate our SSI-based trading strategies via Mirror Trader free of charge

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 http://www.twitter.com/DRodriguezFX


original source