DailyFX.com - Euro at Critical Turning Point versus Japanese Yen

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EURJPYRetail FX traders have bought aggressively into Euro weakness versus the resurgent Japanese Yen. Yet sentiment extremes suggest that the EURJPY exchange rate may soon set an important low.

Trade Implications – EURJPY: Yesterday we noted that a USDJPY and EURJPY break lower could spark much larger FX market volatility as traders unwind Japanese Yen-short positions. Yet the Euro has held key support at ¥138 as the Dollar trades near ¥102. The fact that retail trader long interest in the EURJPY is now near multi-year highs may instead suggest that we’re at an important sentiment and price extreme. Barring a sharp jump in volatility, the one-sided sentiment suggests the EURJPY and USDJPY could trade higher.

See next currency section:EURUSD - Euro at Clear Risk of Bounce Near Key Support
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Forex pairs in this Article » EUR/JPY

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