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Forex Traders Remain Heavily Long the USD/JPY – Losses Likely
Thursday, 29 January 2009 14:22:54 GMT  |  David Rodriguez, Quantitative Analyst
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USD/JPY ratio: 1.51
Trading Forecast: Bearish

Forex_Trading_2009-01-29_3

USDJPY – Our contrarian forex trading strategies continue to sell the US Dollar/Japanese Yen currency pair, as forex trading crowds remain very bullish the USD/JPY. The ratio of long to short positions in the USDJPY stands at 1.54 as nearly 61% of traders are long. Yesterday, the ratio was at 1.67 as 63% of open positions were long. In detail, long positions are 4.0% higher than yesterday and 13.5% stronger since last week. Short positions are 13.2% higher than yesterday and 10.0% weaker since last week. Open interest is 7.5% stronger than yesterday and 36.5% below its monthly average. The SSI is a contrarian indicator and signals more USDJPY losses. Yet a modest pullback in longs weakens the strength of our forecast.

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