Video Summary:
– US Dollar trades at critical support versus the Japanese Yen
– Heavily one-sided retail FX trader sentiment underlines downside USDJPY risk
– Upcoming Fed rate decision critical as pair extremely correlated to US yields
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US Dollar Continues to Trade Near Key Lows Versus Japanese Yen
Source: FXCM Trading Station Desktop, Prepared by David Rodriguez
Retail FX Sentiment Shows Traders are Heavily Long USD versus the Yen
Source: FXCM Execution Desk Data, Chart Prepared by David Rodriguez
Strong link between USDJPY and US Treasury Yields Leaves Focus on FOMC Meeting
Data source: Bloomberg, Prepared by David Rodriguez
Forex Correlations Summary
View forex correlations to the SP 500, SP Volatility Index (VIX), Crude Oil Futures prices, US Treasury Yields, and Spot Gold prices.
Data source: Bloomberg. Chart source: R SEE GUIDE ON READING THE ABOVE CHART
— Written by David Rodriguez, Quantitative Strategist for DailyFX.com David specializes in automated trading strategies. Find out more about our automated sentiment-based strategies on DailyFX PLUS.
Contact and follow David via Twitter: https://twitter.com/DRodriguezFX