Receive the Weekly Speculative Sentiment Index report via PDF via David’s e-mail distribution list.
Japanese Yen – Retail forex trading crowds are now net-short the US Dollar versus the Japanese Yen for the first time since the USDJPY traded above ¥103. A contrarian view of crowd sentiment leaves us in favor of further gains.
Trade Implications – JPY Pairs: A substantial shift towards crowd selling suggests the USDJPY rally is the ‘real deal’, and continuation above ¥100 seems likely.
Indeed, our purely sentiment-based Momentum2 trading strategy is now long USDJPY from 99.06, and our technical forecast favors getting long above major trendline resistance.
Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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 https://www.twitter.com/DRodriguezFX
Facebook at https://www.Facebook.com/DRodriguezFX