British Pound Expected to Fall versus JPY
GBPJPY – Forex trading crowds have remained aggressively long the British Pound against the Japanese Yen since the GBPJPY crossed below the ¥128 mark. We see little reason to call for a substantial GBPJPY reversal as our Speculative Sentiment Index shows traders remain strongly bullish. Yet a noteworthy 32 percent week-over-week jump in short positioning clouds short-term outlook. We remain bearish GBPJPY, but the shift in positioning gives us pause on calls for further near-term declines.
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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