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
To receive the Speculative Sentiment Index and other reports from this author via e-mail, send a message with subject line “Distribution List” to drodriguez@dailyfx.com
Meet the DailyFX team in Las Vegas at the annual FXCM Traders Expo, November 2-4, 2012 at the Rio All Suite Hotel & Casino. For additional information regarding the schedule, workshops and accommodations, visit the FXCM Trading Expo website.
