GBPJPY – Forex trading crowds are now net-short the GBPJPY for the first time since the pair traded near ¥125, and an apparent shift in sentiment favors further topside. The current SSI ratio is effectively neutral. Yet short positions are 4% higher from last week while longs tumbled 16%. It’s perhaps a bit late to jump on the GBPJPY-long bandwagon as there’s clear risk of short-term corrections. Yet the tide has shifted and we expect it to trend higher through the medium term.
How do we interpret the SSI? Watch an FXCM Expo Presentation that explains the SSI.
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
To receive the SSI via e-mail and other reports from author David Rodríguez, e-mail subject line “Distribution List” to drodriguez@dailyfx.com
Contact David via Twitter at http://www.twitter.com/DRodriguezFX
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
Learn forex trading with a free practice account and trading charts from FXCM.
