USD/JPY ratio: 1.22
Trading Forecast: Bearish

USDJPY – Our contrarian forex trading strategies have finally gone long the USD/JPY, as forex sentiment has increasingly pointed to further rallies. Yet we likewise note that our contrarian SSI ratio has more recently flipped to bearish territory; the ratio of long to short positions in the USDJPY stands at 1.22 as nearly 55% of traders are long. Yesterday, the ratio was at 1.03 as 51% of open positions were long. In detail, long positions are 16.0% higher than yesterday and 9.4% weaker since last week. Short positions are 2.5% lower than yesterday and 6.3% stronger since last week. Open interest is 6.9% stronger than yesterday and 19.7% below its monthly average. The SSI is a contrarian indicator and signals that the USD/JPY may finally turn down after a series of impressive rallies.