US Dollar Poised for Further Appreciation Versus Yen
09/05/2014 9:00 am EST
With trader sentiment towards the US dollar versus the yen at its most extreme in over six years, David Rodriguez of DailyFX.com points out that only a significant change in sentiment could dampen even further appreciation.
Trade Implications—JPY Pairs: Last week we noted that traders remained net-short USD/JPY for the first time since it topped out on the first trading day of 2014, and said fact left us clearly in favor of continued strength. Indeed the volume profile in USD/JPY trading seems supportive of continued strength, and only a material shift in sentiment combined with a daily close below ¥102.75 would turn us bearish.
By David Rodriguez, Quantitative Strategist, DailyFX.com