USD/JPY ratio: 1.27
Trading Forecast: Bearish

USDJPY – Our contrarian forex trading strategies remain short the US Dollar against the Japanese Yen, as forex sentiment highlights risks of further USD/JPY weakness. The ratio of long to short positions in the USDJPY stands at 1.27 as nearly 56% of traders are long. Yesterday, the ratio was at 1.12 as 53% of open positions were long. In detail, long positions are 4.8% higher than yesterday and 23.0% stronger since last week. Short positions are 7.6% lower than yesterday and 21.9% stronger since last week. Open interest is 1.1% weaker than yesterday and 17.2% above its monthly average. The SSI is a contrarian indicator and gives us reason to expect further USD/JPY losses. Yet we would ideally see the headline ratio reach further extremes before taking an aggressively bearish position through short-term trading.