British Pound Forecast to Strengthen against Yen
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GBPJPY - The ratio of long to short positions in the GBPJPY stands at -1.59 as 39% of traders are long. Yesterday the ratio was -1.57; 39% of open positions were long. Long positions are 1.1% higher than yesterday and 2.3% above levels seen last week. Short positions are 2.3% higher than yesterday and 3.1% above levels seen last week. Open interest is 1.8% higher than yesterday and 18.8% 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 and last week. The combination of current sentiment and recent changes gives a further bullish trading bias.
See next currency section: EURUSD - Euro Likely to Test Further Highs versus US Dollar
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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