Japanese Yen Forecast to Strengthen
USDJPY – Forex trading crowd positioning has remained heavily net-long since the pair traded above 90, giving consistent contrarian signal to sell into USDJPY weakness. The ratio of long to short positions in the USDJPY stands at 3.49 as nearly 78% of traders are long. Yesterday, the ratio was at 4.19 as 81% of open positions were long. In detail, long positions are 1.5% higher than yesterday and 0.1% stronger since last week. Short positions are 21.9% higher than yesterday and 45.8% stronger since last week. The overnight build in short positions suggests downward momentum could slow, but the fact that long positions continue to outnumber shorts by a sizeable 3.5 to 1 gives consistent contrarian signal to watch for further losses.
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