Forex retail trading crowds are heavily long the British Pound against the Japanese Yen, but the level of long positioning is now at its lowest since the pair crossed below key lows at the ¥128 mark. Last week we called for fresh GBPJPY lows on one-sided sentiment. Yet long positions have fallen while shorts have risen.
We remain bearish GBPJPY as it remains within a well-defined downtrend from the ¥133 top, but there is scope for further short-term strength as we see financial markets correct recent losses.
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--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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