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British Pound at Risk of Break Lower versus Yen

British Pound at Risk of Break Lower versus Yen

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GBPJPYAn important shift in retail trader positions in the Japanese Yen warns that the GBPJPY may trade to fresh lows through the foreseeable future.

Trade Implications – GBPJPY:Choppy price action in the Sterling versus the Yen has made for similarly directionless retail FX trader sentiment—effectively leaving us on the sidelines in the past two months. Yet we’ve seen a shift towards crowd buying as the GBPJPY trades into multi-week lows. Such a change warns that the GBP may trade towards H2, 2014 lows near ¥170.00 through the foreseeable future.

See next currency section:EURUSD – Euro Sets Potentially Significant Low versus US Dollar

Written by David Rodriguez, Quantitative Strategist for DailyFX.com

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