Japanese Yen Bounce Leads Systems to Buy

| 18 april, 2013 | 0 kommentarer

ssi_usd-jpy_body_Picture_16.png, Japanese Yen Bounce Leads Systems to Buy

EURJPY – Remarkably choppy price action in the Japanese Yen has made for a difficult week of sentiment-based trading, and the next JPY moves may prove pivotal amidst strong market swings.

Trade Implications – EURJPY: Our purely sentiment-based Momentum2 system flipped direction on the EURJPY and sold from ¥128.15 then ¥127.26 as retail traders bought aggressively into the most recent sell-off. Yet there is distinct risk of getting chopped out of the recent short position as we’ve seen little follow-through on the recent JPY rally.

Elevated Japanese Yen volatility expectations emphasize that prices will remain volatile in the days ahead. And though we won’t give up on the EURJPY-short positions just yet, we think it prudent to keep risk tight as overall forex market conditions remain quite choppy.

Written by David Rodriguez, Quantitative Strategist for DailyFX.com

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ssi_usd-jpy_body_1a_2.png, Japanese Yen Bounce Leads Systems to Buy

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