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USDJPY – Retail forex traders are now net-short the US Dollar versus the Japanese Yen for the first time in four months; we’ll continue to watch for USDJPY gains until sentiment shifts.
Trade Implications – JPY Pairs: The trading crowd last turned short as the pair crossed above the ¥104 mark and quickly reversed. We could obviously see a similar ‘fake-out’ if the Dollar fails to hold gains, but as long as retail traders remain short we’ll watch for continued USDJPY strength.
See next currency section:AUDUSD - Australian Dollar Poised for Continued Weakness
Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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