Japanese Yen Forecast Unclear
USDJPY – Currency trading crowds have remained net-long the US Dollar against the Japanese Yen since the pair traded above the 90.00 mark. Yet a more recent decline in long positions and similar bounce in short positions clouds short-term outlook on said currency pair. The ratio of long to short positions in the USDJPY stands at 3.58 as nearly 78% of traders are long. Yesterday, the ratio was at 5.03 as 83% of open positions were long. In detail, long positions are 7.7% lower than yesterday and 26.3% weaker since last week. Short positions are 30.0% higher than yesterday and 64.6% stronger since last week. Open interest is 1.5% weaker than yesterday and 4.7% below its monthly average. The SSI is a contrarian indicator, but has shown relatively sensitivity to USDJPY price action as of late. Our SSI-based bias is subsequently neutral.
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