Bearish USDJPY on 19th week of 2011

I am going bearish on USDJPY this week using my QTD system. No position is opened at this point. I am merely entering my sentiment into the system to trade for me. Figure 1 is a daily chart of USDJPY. Notice it's lack of life despite the USD making headlines last week. Figure 2 shows the move with a US dollar index, USDX, daily chart. Furthermore, according to the order book on USDJPY, there are massive bullish positions in the red (at a loss) which make this pair ripe for some bull squeeze. I am going short on NZDUSD as a hedge on this move. It is my favourite long USD pair these days. [caption id="attachment_5405" align="aligncenter" width="580" caption="USDJPY, daily"][][][/caption] [caption id="attachment_5406" align="aligncenter" width="580" caption="U.S. dollar index futures, USDX"][][][/caption]

[]: http://www.quantisan.com/static/images/2011/05/2011-05-08-USDJPY.png []: http://www.quantisan.com/static/images/2011/05/2011-05-08-USDX.png