Japanese Yen Shows Signs of Capitulation
USDJPY – Currency trading crowds have remained net-long the US Dollar against the Japanese Yen since the pair traded above the 90.00 mark. Extreme volatility has meant many traders have effectively given up on USDJPY-long positions. The ratio of long to short positions in the USDJPY stands at 4.32 as nearly 81% of traders are long. Yesterday, the ratio was at 9.27 as 90% of open positions were long. In detail, long positions are a sizeable 38.7% lower than yesterday and 2.0% weaker since last week. Short positions are 31.7% higher than yesterday and 13.7% weaker since last week. Open interest is 31.8% weaker than yesterday and 10.1% below its monthly average. The strong capitulation suggests that the USDJPY could soon see a bounce, but it is difficult to advocate a long amidst such sharply downward momentum.
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