SSI: The Speculative Sentiment Index
The SSI is reported Every Thursday at DailyFX.com and twice every trading day inside DailyFX PLUS.
US Dollar Clings to Key Support versus Japanese Yen
Receive the Weekly Speculative Sentiment Index report via PDF via David’s e-mail distribution list.
USDJPY - The ratio of long to short positions in the USDJPY stands at 1.84 as 65% of traders are long. Long positions are 1.5% lower than yesterday and 12.2% above levels seen last week. Short positions are 1.4% lower than yesterday and 10.9% below levels seen last week. Open interest is 1.4% lower than yesterday and 1.1% below its monthly average. We use our SSI as a contrarian indicator to price action, and the fact that the majority of traders are long gives signal that the USDJPY may continue lower. The trading crowd has grown less net-long from yesterday but further long since last week. The combination of current sentiment and recent changes gives a further bearish trading bias.
See next currency section:AUDUSD - Australian Dollar Likely to Continue Lower
Written by David Rodriguez, Quantitative Strategist for DailyFX.com
To receive the Speculative Sentiment Index and other reports from this author via e-mail, sign up for his distribution list via this link.
Contact David via
Twitter at http://www.twitter.com/DRodriguezFX