USD/JPY ratio: 1.11
Trading Forecast: Bearish

USDJPY – Our sentiment-based forex trading strategies continue to aggressively sell the US Dollar/Japanese Yen currency pair, as a shift in forex positioning signals further USD/JPY losses are likely. Yet a recent surge in short positions suggests that the very short-term could see the USDJPY retrace some of its recent losses. The ratio of long to short positions in the USDJPY stands at 1.12 as nearly 53% of traders are long. Yesterday, the ratio was at 1.70 as 63% of open positions were long. In detail, long positions are 4.0% higher than yesterday and 12.9% stronger since last week. Short positions are a massive 58.6% higher than yesterday and 24.9% stronger since last week. The SSI is a contrarian indicator and signals more USDJPY losses, but the recent jump in short interest very much dampens the strength of our bearish forecast.