British Pound Outlook Unclear versus Japanese Yen
Forex trading crowds have remained aggressively long the British Pound against the Japanese Yen since the GBPJPY crossed below the ¥128 mark. The sharp shift gave us contrarian signal that the pair could continue lower. Yet long positions have fallen 10 percent since last week while short interest is up 8 percent through the same stretch. When retail crowds are net-long but have begun selling, our SSI typically calls for short-term consolidation or perhaps a turn in overall trends.
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--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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