British Pound Forecast to Strengthen versus Yen
GBPJPY – Retail traders are now net-short the British Pound against the Japanese Yen for the first time since September, and the sharp shift in sentiment gives us contrarian signal that the pair may continue to further highs. Short interest has jumped 40 percent since last week, while long interest has fallen by the same amount.
This lines up well with our USDJPY-bullish bias, and indeed it seems as though the Japanese Yen has further room to fall against broader counterparts.
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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