British Pound May Fall Further versus Yen
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GBPJPY - The ratio of long to short positions in the GBPJPY stands at 1.16 as 54% of traders are long. Yesterday the ratio was -1.01; 50% of open positions were long. Long positions are 3.9% higher than yesterday and 16.7% above levels seen last week. Short positions are 11.4% lower than yesterday and 2.9% below levels seen last week. Open interest is 3.8% lower than yesterday and 3.4% below its monthly average. 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 flipped from net-short to net-long from yesterday and last week. The combination of current sentiment and recent changes gives a further bearish trading bias.
See next currency section: EURUSD - Forex Trader Sentiment Points to Further Euro Gains
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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