Pullback in British Pound Clouds Outlook versus Yen
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GBPJPY - The ratio of long to short positions in the GBPJPY stands at 1.19 as 54% of traders are long. Yesterday the ratio was -1.01; 50% of open positions were long. Long positions are 4.6% higher than yesterday and 40.1% below levels seen last week. Short positions are 12.4% lower than yesterday and 24.4% above levels seen last week. Open interest is 3.9% lower than yesterday and 0.4% 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 but unchanged since last week. The combination of current sentiment and recent changes gives a further mixed trading bias.
See next currency section: EURUSD - Aggressive Crowd Selling Points to Euro Gains
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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