British Pound Forecast to Gain versus Yen
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GBPJPY - The ratio of long to short positions in the GBPJPY stands at -1.41 as 41% of traders are long. Yesterday the ratio was -1.37; 42% of open positions were long. Long positions are 9.2% lower than yesterday and 15.7% below levels seen last week. Short positions are 6.8% lower than yesterday and 37.3% above levels seen last week. Open interest is 7.8% lower than yesterday and 7.5% above its monthly average. We use our SSI as a contrarian indicator to price action, and the fact that the majority of traders are short gives signal that the GBPJPY may continue higher. The trading crowd has grown further net-short from yesterday but unchanged since last week.
The combination of current sentiment and recent changes gives a further bullish trading bias.
See next currency section: EURUSD - Euro Downtrend Remains Intact
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.