– Japanese Yen buying has surged versus the British Pound
– US Dollar outlook unclear on recent shifts in sentiment
– Next moves pivotal, but clearest trades in Yen pairs
View individual currency sections:
EURUSD – It’s Time for the Euro to Tell us Where it’s Headed
GBPJPY – Japanese Yen Forecast to Fall Further (USDJPY, GBPJPY Rally)
GBPUSD – British Pound Trading Outlook Sees Big Change
AUDUSD – Australian Dollar Turn Lower Short Lived – We’ll Cut Losses
XAUUSD – Gold Prices Stuck in Downtrend
SPX500 – SP 500 at Little Risk of Major Turn Lower
Weekly Summary of Forex Trader Sentiment and Changes in Positioning
A big build in Japanese Yen buying versus the US Dollar, British Pound, Euro, and Australian Dollar leaves us plainly in favor of further weakness (USDJPY, GBPJPY, EURJPY, AUDJPY strength).
In fact, forex retail crowds are now their most net-short GBPJPY in over 2 years.
Elsewhere recent shifts in sentiment have forced us to reconsider our calls for major US Dollar strength. With the Euro in particular we’ll need to see a material break lower and shift in sentiment to call for further declines.
Read full currency pair-by-currency pair rundowns in the links above, and follow future updates on retail sentiment and our trading strategies via my e-mail distribution list.
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— Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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