DAX 40 Buy Sentiment Nearing Shift — EUR/USD and USD/JPY in Focus

The DAX 40 index is showing signs that its prevailing majority buy sentiment may be approaching a critical inflection point, with implications rippling across forex markets including EUR/USD and USD/JPY. The analysis highlights that crowded long positioning in the German benchmark could precede a sentiment reversal, which would likely weigh on the euro and influence broader risk appetite. The article also draws connections to equity benchmarks such as the Nasdaq 100 and FTSE 100, underscoring a global risk sentiment theme. For forex traders, a shift in DAX sentiment could trigger euro weakness against the dollar and Swiss franc, while risk-off flows may benefit the Japanese yen. EUR/USD remains sensitive to European equity performance, and any DAX pullback could test nearby support levels in the pair. USD/JPY could see yen strengthening if equity markets turn lower and safe-haven demand increases. Traders should watch for confirmation signals in both equity and forex markets, as a sentiment shift in the DAX may catalyze broader repositioning across major currency pairs.