USD/JPY Ratio: -1.59 Signal: Bullish
USDJPY – The presence of 108.50 – a major level of resistance for USDJPY since January - is having a notable impact on speculative sentiment. Despite a steady appreciation in the exchange rate over the past two weeks, the retail crowd seems to be confident that technicals will hold; and the market will remain range bound for the foreseeable future. Today, the USDJPY SSI is at -1.59 with nearly 61% of retailers holding shorts. And, while this was a move to the center compared to last week’s -2.12 reading, the gauge is clearly reflecting the line in the sand retail traders have drawn. Details of the positioning report show long positions grown 0.5% from yesterday and are 14.4% stronger than last week. At the same time, shorts have also grown 0.5% from Wednesday and 5.3% over the week. The build up of interest on both sides of the market has in turn led net positioning to rise 8.8% through the same week to a level that is 8.7% above the running monthly average.