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GBPJPY – Retail forex traders have turned long the British Pound against the Japanese Yen for the first time since the pair bottomed near ¥170, and the important shift gives us pause in our earlier calls for GBPJPY strength.
Trade Implications – GBPJPY: The fact that retail long interest in the GBPJPY has surged 42 percent over the past week serves as clear warning for Sterling bulls. Yet exceedingly low forex market volatility suggests that the familiar GBPJPY range may remain intact. It will be critical to see whether the pair is able to close above key support; finishing below ¥171.92 leaves the pair at risk of a larger breakdown.
See next currency section:EURUSD – Major Shift Points to Further Euro Losses
— Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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