How To Use USD/JPY To Stand Out

Hello everyone, today we are going to come back to the analysis of the most interesting currency pair USD/JPY.

We have already considered the instrument, displaying a characteristic trend for the dollar, which grew on increased speculative demand.

However, the change in the latest data slightly changed the overall picture, which was the result of the revision of the position on the dollar and signs of slowing the growth in demand for the American currency.

Figure 1. Price chart and the index of large market players for USD/JPY from 07.18.2018 to 08.18.2018.

As we can see in Figure 1, the value of the index has significantly decreased over the last week, speaking of a sharp change in the opinion of major traders on the growth of the dollar, towards strengthening the Yen.

At the same time, the volume is significant enough to cause a change in the trend for the instrument, in the short term.

Another argument in favor of maintaining a bearish mood is the presence of the index of major traders in the upper register, which indicates the historical maximum of the volume of positions on the instrument, which indicates a significant "overbought" in volume.

So, based on the latest data on the volume of demand for the yen, we can come to the conclusion that the next trend has changed direction with a clear bearish mood.

Therefore, we recommend the predominance of short positions in trade in the short term.