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USDJPY –An aggressive shift towards USDJPY-selling and a break of critical resistance leaves us looking for further strength.
Trade Implications – JPY Pairs: Our Senior Strategist writes that ¥102.75 represented a critical test for the USDJPY, and the break higher leaves us focused on a run towards multi-year and YTD highs at ¥105.43. It’s admittedly risky to buy the US Dollar as it drops to fresh lows versus the Euro and other key counterparts. Yet a surge in the highly-correlated SP 500 and Nikkei 225 suggests the USDJPY has further room to run. One of our sentiment-based trading strategies has gone long the Dollar from ¥102.36.
Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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