Key Factors Favor a Much Larger USDJPY Breakout

By DailyFx | Updated July 31, 2014 AAA

DailyFX.com - Key Factors Favor a Much Larger USDJPY Breakout

Receive the Weekly Speculative Sentiment Index report via PDF via David’s e-mail distribution list.

USDJPY A significant shift in trader sentiment warns that the US Dollar may be on the cusp of a major breakout versus the Japanese Yen.

Trade Implications – JPY Pairs: The USDJPY consolidated for just over six months and is attempting to break out. We sense a bit of déjà vu; we saw a very similar stretch of range-bound price action in 2013 before making a 700-point run towards multi-year peaks.

An oversimplified extrapolation puts the USDJPY as high as ¥109 in two months’ time. Though this admittedly seems unlikely, the substantial swing in sentiment suggests this could be the start of a much larger move. The fact that so few expect the major breakout may in fact make it more plausible.

See next currency section:AUDUSD - Australian Dollar Poised for Further Losses

Written by David Rodriguez, Quantitative Strategist for DailyFX.com

Key Factors Favor a Much Larger USDJPY Breakout

Automate our SSI-based trading strategies via Mirror Trader free of charge

To receive the Speculative Sentiment Index and other reports from this author via e-mail, sign up for his distribution list via this link.

Contact David via

Twitter at http://www.twitter.com/DRodriguezFX

You May Also Like

Related Forex Analysis
  1. Forex News

    USD/JPY climbs higher, eyes 120 levels

  2. Forex News

    Credit Suisse: Expect USD/JPY to target 119.90 levels - eFXnews

  3. Forex News

    USD/JPY hits fresh daily high

  4. Forex News

    USD/JPY Technical Analysis: Trying to Expose 120.00 Level

  5. Forex News

    USD/JPY at last week’s highs looking better bid

Trading Center