British Pound Targets Lows versus Japanese Yen
GBPJPY - The ratio of long to short positions in the GBPJPY stands at 2.82 as nearly 74% of traders are long. Yesterday, the ratio was at 1.93 as 66% of open positions were long. In detail, long positions are 29.3% higher than yesterday and 78.1% stronger since last week. Short positions are 11.2% lower than yesterday and 23.1% weaker since last week. Open interest is 15.5% stronger than yesterday and 14.5% above its monthly average. The SSI is a contrarian indicator and signals more GBPJPY losses.
Indeed, retail traders are going long the GBPJPY as the pair comes up against 125.00, but the shift away from risk-taking behavior may trigger another sharp decline in the exchange rate as searches for support. As the RSI dips into oversold territory, the downward trend in the oscillator continues to instill a bearish outlook for the pair, and we may see the pound-yen fall revert back to the 200-Day SMA (124.20) should the 125.00 figure fail to provide psychological support.
How do we interpret the SSI? Watch an FXCM Expo Presentation that explains the SSI.
--- Written by David Song, Currency Analyst
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