USD/JPY Ratio: 1.31 Trading Forecast: Bearish
USDJPY – Currency traders have recently bought into US Dollar/Japanese Yen declines, and the ratio of long to short positions in the USD/JPY currently stands at 1.30 as nearly 56 percent of traders are long. In fact, US dollar/Japanese Yen long positions have surged by 30.9 percent overnight—clear sign that the forex trading crowd is becoming increasingly bullish the fast-falling pair. Whenever we see crowds buying into sharp USD/JPY declines, we often see the currency pair continue lower through subsequent trading. Indeed, the SSI is a contrarian indicator and signals more USDJPY losses. Monitor our SSI-based USD/JPY trading strategies on DailyFX+.