USDJPY is approaching a key weekly resistance area at around 112.2 ahead of the NFP report due on Friday. At the time of writing, the dollar has gained 2.3% against the Yen over the past 3 weeks.
Based on the Sentiment Trader Tool, we know that more than 3 quarters of traders are shorting the pair, most likely due to the “sell at resistance” strategy that they employ. However, we know that most retail traders lose money, and therefore a contrarian perspective might be helpful.
The upcoming ADP non-farm employment change and NFP are going to play a role in setting the dollar sentiment for the rest of the month and probably until the end of the year.
What are your thoughts?
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