USD/JPY Ratio: -1.11 Signal: Bullish
USDJPY – After nine solid months of negative positioning and steady yen advance, the USDJPY Speculative Sentiment Index ratio has finally flipped with a -1.11 reading. Officially, the shift in sentiment occurred at the turn of the month when the pair rallied through 100 and put the steady trend into doubt. What’s more, the details reveal that this notable change in sentiment has come with considerable shifts in positioning. In detail, longs have sank 37.6% since yesterday and plummeted 50% since last week. Absorbing some of the capital from stops and profit taking on the long side, short positions jumped 19.2% from yesterday and are 14.5% greater than last week. Altogether though, open interest is 16.8% weaker than Wednesday and 11.4% below the monthly average. As a contrarian indicator, the negative SSI ratio points to an extended USDJPY advance.