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USDJPY-Japanese Yen Predicted to Strengthen Further Against US Dollar

Thursday, 09 October 2008 14:13:20 GMT

Written by David Rodriguez, Quantitative Analyst

USD/JPY Ratio: 1.28
Trading Forecast: Bearish

Forex Positioning in the USDJPY

10-09-08-SSI2

 

USDJPY – Our forex positioning indicator has forecasted that the US dollar would decline against the Japanese Yen since the USDJPY traded at 108, and a contrarian read of forex positioning continues to predict further USDJPY losses. The ratio of long to short positions in the USDJPY stands at 1.27 as nearly 56% of traders are long. Yesterday, the ratio was at 1.42 as 59% of open positions were long. The drop in USDJPY buying suggests that we may see a short-term correction of USDJPY weakness, but the SSI is a contrarian indicator and signals more USDJPY losses. Discuss the USDJPY and other Japanese Yen pairs in the forex forum.

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