Receive the Weekly Speculative Sentiment Index report via PDF via David’s e-mail distribution list.
EURJPY – Trading crowds remain long the Euro versus the Japanese Yen, but a noteworthy change in sentiment suggests the EURJPY set an important low and may trade higher.
Trade Implications – EURJPY: Last week we wrote that extremely one-sided sentiment warned of a EURJPY reversal, and indeed the pair turned higher and positioning has since moderated. The fact that crowds are still long suggests that the overall trend favors losses. Yet a continued pullback in crowd positioning leaves us in favor of further Euro gains.
See next currency section:EURUSD - Euro Looks Likely to Test Monthly Peaks