British Pound Outlook Unclear vs. Yen
GBPJPY – The British Pound continues to strengthen against the US Dollar and Japanese Yen. Yet relatively neutral retail trading crowd sentiment suggests that a major move higher remains somewhat unlikely. Our Speculative Sentiment Index shows there are 1.35 traders short for every one long. We would ideally see a stronger bias before making a forecast with more conviction, and indeed it seems entirely possible that the pair continues its recent consolidation pattern between ¥128 and ¥132.
How do we interpret the SSI? Watch an FXCM Expo Presentation that explains the SSI.
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
To receive the SSI via e-mail and other reports from author David Rodríguez, e-mail subject line “Distribution List” to email@example.com; Contact David via Twitter at http://www.twitter.com/DRodriguezFX
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.