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USDJPY – The forex trading crowd remains short the US Dollar versus the Japanese Yen for the first time since December, and the substantial shift warns that the USDJPY is at an important turning point.
Trade Implications – JPY Pairs: We last saw traders remain short USDJPY as it traded above ¥105 in December before reversing lower. It’s entirely possible that we are at a similar price and sentiment extreme and the Dollar turns lower. Yet we’ll need to see a daily close below ¥102.75 to shift from our bullish trading bias.
See next currency section:AUDUSD - Australian Dollar Shows Signs of Important Reversal
Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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