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Looking to Trade a Potential USDJPY Breakdown

ssi_usd-jpy_body_Picture_17.png, Looking to Trade a Potential USDJPY Breakdown

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Japanese Yen – Retail forex traders are now their most long the US Dollar versus the Japanese Yen since the USDJPY set a noteworthy short-term bottom at ¥96.55.

Trade Implications – JPY Pairs: When everyone is buying, we typically like to sell. Yet the fact remains that retail FX traders tend to do well in slow-moving range-bound market conditions. Our Senior Technical Strategist points out that a USDJPY bounce is certainly possible, but traders should be careful of a major break lower. Absent a breakdown we’ll likely stick to the sidelines.

Written by David Rodriguez, Quantitative Strategist for DailyFX.com

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