GBP/JPY Rally Expected to Continue
GBPJPY - The ratio of long to short positions in the GBPJPY stands at -1.76 as 36% of traders are long. Yesterday the ratio was -1.20; 45% of open positions were long. Long positions are 23.5% lower than yesterday and 24.0% below levels seen last week. Short positions are 12.0% higher than yesterday and 12.0% above levels seen last week. Open interest is 4.1% lower than yesterday and 3.5% 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 further net-short from yesterday and last week. The combination of current sentiment and recent changes gives a further bullish trading bias.
--- Written by Christopher Vecchio, Currency Strategist
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