USDJPY - Forex trading crowds continue to buy into US Dollar/Japanese Yen declines, and our contrarian SSI has given a steady contrarian signal to sell the USD/JPY. The ratio of long to short positions in the USD/JPY stands at a whopping 2.11 as nearly 68% of traders are long. Yesterday, the ratio was at 1.30 as 56% of open positions were long. The increasingly extreme positioning on the forex pair suggests that “the crowd” has not given up hope of a reversal, and typically we have seen that the USD/JPY will continue its trend until the crowd capitulates. The SSI is a contrarian indicator and signals more USDJPY losses. Monitor our SSI-based USD/JPY trading strategies on DailyFX+.
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