Crowd Piles into Long GBP/JPY Positions
GBPJPY - The ratio of long to short positions in the GBPJPY stands at 1.66 as 62% of traders are long. We use our SSI as a contrarian indicator to price action, and the fact that the majority of traders are long gives signal that the GBPJPY may continue lower. The trading crowd has grown further net-long from yesterday and last week. The combination of current sentiment and recent changes gives a further bearish trading bias.
--- Written by Christopher Vecchio, Currency Strategist