Japanese Yen Forecast Remains Bullish
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 3.67 as nearly 79% of traders are long. Yesterday, the ratio was at 3.73 as 79% of open positions were long. In detail, long positions are 2.6% lower than yesterday and 18.0% weaker since last week. Short positions are 0.9% lower than yesterday and 6.4% stronger since last week. Open interest is 2.2% weaker than yesterday and 20.0% below its monthly average. The net-long SSI ratio gives us a consistent contrarian signal to go short, but the lack of movement in said pair warns against taking an aggressive short position.
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