British Pound Likely Reversed vs JPY
GBPJPY – Forex trading crowds are now net-short the GBPJPY for the first time since the pair traded near ¥125, and an apparent shift in sentiment favors further topside. The current SSI ratio is effectively neutral. Yet short positions are 4% higher from last week while longs tumbled 16%. It’s perhaps a bit late to jump on the GBPJPY-long bandwagon as there’s clear risk of short-term corrections. Yet the tide has shifted and we expect it to trend higher through the medium term.
How do we interpret the SSI? Watch an FXCM Expo Presentation that explains the SSI.
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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