British Pound Forecast to Rally against Yen
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GBPJPY - The ratio of long to short positions in the GBPJPY stands at -1.19 as 46% of traders are long. Yesterday the ratio was -1.42; 41% of open positions were long. Long positions are 15.8% higher than yesterday and 40.4% above levels seen last week. Short positions are 2.5% lower than yesterday and 3.9% above levels seen last week. Open interest is 5.1% higher than yesterday and 0.6% below 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 less net-short from yesterday and last week. The combination of current sentiment and recent changes gives a further mixed trading bias.
See next currency section:EURUSD - Euro Forecast to Gain further versus US Dollar
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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