US Dollar Poised for Further Appreciation Versus Yen

09/05/2014 9:00 am EST


David Rodriguez

Quantitative Strategist,

With trader sentiment towards the US dollar versus the yen at its most extreme in over six years, David Rodriguez of points out that only a significant change in sentiment could dampen even further appreciation.

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USD/JPY—The US dollar has surged above ¥105 versus the yen and our retail trader data shows sentiment is now at its most extreme in over six years.

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,

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