[B]Commentary[/B]: See yesterday?s commentary for the price structure. We want to focus today on the recently released COT report. Speculative net positioning on JPY futures increased from record bearish levels last week. The same scenario occurred in late October 2006 and early February 2007.
In each instance, the USDJPY formed tops that week and fell hard. Longs should be careful as sentiment is ripe for a top. [B]Strategy[/B]: Move to flat, get bearish on trendline break.