51.5% OF TRADERS ARE NET-LONG
GBPJPY: Retail trader data shows 51.5% of traders are net-long with the ratio of traders long to short at 1.06 to 1. The percentage of traders net-long is now its highest since Feb 18 when GBPJPY traded near 142.915. The number of traders net-long is 28.9% higher than yesterday and 39.2% higher from last week, while the number of traders net-short is 15.7% lower than yesterday and 40.2% lower from last week.
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GBPJPY: SENTIMENT SUGGESTS BEARISH TRADING BIAS
We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests GBPJPY prices may continue to fall. Traders are further net-long than yesterday and last week, and the combination of current sentiment and recent changes gives us a stronger GBPJPY-bearish contrarian trading bias.
--- Written by Nancy Pakbaz, CFA, DailyFX Research
Follow Nancy on Twitter @NancyPakbazFX