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GBPJPY – Fairly one-sided trader sentiment warns that the British Pound may continue lower versus the Japanese Yen.
Trade Implications – GBPJPY:Our retail FX trader sample shows there are nearly 1.9 open positions long the GBPJPY for every one that is short, and a contrarian view if crowd sentiment leaves us watching for weakness. A material turn in GBPUSD positions admittedly gives us pause in calling for GBP weakness, but we likewise see risk of a potentially significant USDJPY breakdown. Time will tell whether the JPY can outpace the suddenly-resurgent Sterling.
See next currency section: EURUSD - Euro Likely Turns the Corner on Key Warning Signs
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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