Wednesday, July 30, 2014

Is it a Good Time to Get Long the Dollar versus the Japanese Yen?




- US Dollar breaking major highs versus Japanese Yen



- Our real FX volume indicator shows limited participation in the move



- Critical resistance marks major tests, while positioning warns against chasing here



USDJPY Finally Breaking Out, but Move Occurring on Low Volume and Trader Interest


Is it a Good Time to Get Long the Dollar versus the Japanese Yen?


Source: FXCM Trading Station Desktop, FXCM Real Volume and Transactions Indicator, Prepared by David Rodriguez.



Test of Critical Resistance Can Quickly Tell us if this is Lasting Breakout


Is it a Good Time to Get Long the Dollar versus the Japanese Yen?


Source: FXCM Trading Station Desktop, FXCM Real Volume and Transactions Indicator, Prepared by David Rodriguez.



Professional Positions Have Actually Grown Less Long USDJPY


Is it a Good Time to Get Long the Dollar versus the Japanese Yen?


Source: FXCM Retail FX Positioning Data, Prepared by David Rodriguez.



Retail Traders Are Mostly Closing Long Positions as Pair Tests Highs


Is it a Good Time to Get Long the Dollar versus the Japanese Yen?


Source: FXCM Retail FX Positioning Data, Prepared by David Rodriguez.



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Written by David Rodriguez, Quantitative Strategist for DailyFX.com David specializes in automated trading strategies. Find out more about our automated sentiment-based strategies on DailyFX PLUS.



Contact and follow David via Twitter: https://twitter.com/DRodriguezFX





Is it a Good Time to Get Long the Dollar versus the Japanese Yen?

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