Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious OutperformanceFind Stocks Now

USD, JPY On Verge Of Something Big

Published 01/21/2014, 12:01 PM
Updated 07/09/2023, 06:31 AM
    • Retail forex traders are most short Dollar and JPY since November EUR/JPY and EUR/USD lows
    • Critical question is whether next step is uptrend or this is a mere correction
    • Watch video above and see charts below for full rundown on next market moves

The US Dollar and Japanese Yen have seen substantial swings in forex trading sentiment, but is this the start of a larger uptrend or mere correction?
Retail FX Traders Short <span class=EUR/USD Since November Bottom" title="Retail FX Traders Short EUR/USD Since November Bottom" border="0" height="288" width="576">
Source: FXCM Execution Desk Data
Aggressive Selling Into Yen Strength
Source: FXCM Execution Desk Data
Low Volatility Says Few Bet Against USD
Data source: Bloomberg, Chart source: DailyFX

Forex Correlations SummaryView forex correlations to the S&P 500, S&P Volatility Index (VIX), Crude Oil Futures prices, US 2-Year Treasury Yields and Spot Gold prices.
FX And Asset-Class Correlations
Data source: Bloomberg. Chart source: R SEE GUIDE ON READING THE ABOVE CHART.

--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.