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Talking Points:

• Sentiment trend opportunities are beginning to grow imbalanced, and the Yen crosses offer direct exposure

• With the BoJ capping its stimulus effort, pairs like USDJPY are hanging onto low volatility conditions

• While there is definably opportunity in all the Yen crosses, I have started with EURJPY

Market conditions change, and our strategy should reflect those changes. We have coded the DailyFX-Plus strategies for Breakout, Range and Momentum to adapt to these market shifts.

Though we have yet to see the turn in market sentiment, the balance between potential and probability is setting up tremendous trade opportunities. In FX, the most direct link to 'risk' are the Yen crosses. As the grab for return and yield matures, these carry currencies are presenting an earlier appreciation of the risk unwind than global equities and certainly the S&P 500. Yet, full commitment to such a prolific theme requires greater conviction, and that means more evidence of a shift. In this weekend Strategy Video, we discuss what to watch in sentiment trends, why the Yen crosses are prime opportunities for the theme and the trading approach I'm taking.

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