USD/JPY Ratio: 1.53 Trading Forecast: Bearish
USDJPY – Our forex positioning indicator continues to forecast US dollar losses against the Japanese Yen, as we see that currency trading crowds continue to buy dips in the USDJPY. Our SSI indicator is almost always a contrarian indicator; increasingly one-sided sentiment in a given currency pair often gives signal that it will likely move in the opposite direction. That said, long positions in the USDJPY outnumber shorts at 1.52:1, as nearly 60% of traders are long. Yesterday, the ratio was at 1.14 as 53% of open positions were long. When the forex crowd is long the USDJPY and continues buying, this gives us a fairly clear signal to sell the US Dollar versus the Japanese Yen. Discuss the USDJPY and other Japanese Yen pairs in the forex forum.