– Japanese Yen at critical price levels versus US Dollar, next move key
– Focus shifts to FOMC Minutes and Fed policy as correlations to yields surge
– Clearly one-sided sentiment leaves us focused on USDJPY gains, JPY declines
The US Dollar continues to surge versus the downtrodden Japanese Yen. What could determine whether the USDJPY breaks even higher?
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Japanese Yen Tests Critical Levels versus US Dollar
Source: FXCM Trading Station Desktop, Prepared by David Rodriguez.
Strong Correlations to US Treasury Yields Keep the US FOMC Minutes, Fed Policy in Focus
Data source: Bloomberg, Prepared by David Rodriguez
Our Retail FX Data Sample Shows Short Interest in USDJPY Hits Record, Favors Gains
Source: FXCM Retail FX Positioning Data, Prepared by David Rodriguez.
Follow any updates on the Japanese Yen, US Dollar, and other currencies via this author’s e-mail distribution list.
Forex Correlations Summary
View forex correlations to the SP 500, SP Volatility Index (VIX), Crude Oil Futures prices, US Treasury Yields, and Spot Gold prices.
Data source: Bloomberg. Chart source: R SEE GUIDE ON READING THE ABOVE CHART
— Written by David Rodriguez, Quantitative Strategist for DailyFX.com David specializes in automated trading strategies. Find out more about our automated sentiment-based strategies on DailyFX PLUS.
Contact and follow David via Twitter: https://twitter.com/DRodriguezFX