Chart of the Week - Yen

Positioning. Sentiment, Market Tone. Its all you need.

This week’s chart is fairly straightforward. One look at the Yen chart shows how crowded Speculators have become the last few months especially when you compare current levels to historical levels the last few years. Combine positioning with a news failure event and you have yourself a high reward/low risk trade based on positioning and price action. Does not work every time, but it does not have to. Just respect the stop loss, exit losers quickly, let winners go until positioning is neutral, and it should work over time.