British Pound Forecast to Strengthen against Yen
Receive the Weekly Speculative Sentiment Index report via PDF via David’s e-mail distribution list.
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
To receive the Speculative Sentiment Index and other reports from this author via e-mail, sign up for his distribution list via this link.
Contact David via
Twitter at http://www.twitter.com/DRodriguezFX
Facebook at http://www.Facebook.com/DRodriguezFX
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.