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GBPJPY – Retail FX traders remain short the British Pound versus the Japanese Yen, and a contrarian view of crowd sentiment leaves us in favor of GBPJPY gains.
Trade Implications – GBPJPY:Our sample shows that traders most recently turned short GBP as it traded above ¥174 and relatively brief exceptions have remained short since then. Current positioning shows approximation 60 percent of open positions are short as the pair consolidates in a narrow price range. Sentiment favors a GBPJPY break higher as long as crowds continue to sell.
See next currency section: EURUSD - Euro Remains a Sell versus US Dollar for this Reason
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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