Japanese Yen Likely to Strengthen vs USD
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. A very recent jump in USDJPY long interest likewise gives contrarian signal that the pair may continue its short-term decline.
The ratio of long to short positions in the USDJPY stands at 4.62 as nearly 82% of traders are long. Yesterday, the ratio was at 3.46 as 78% of open positions were long. In detail, long positions are 5.7% higher than yesterday and 2.1% stronger since last week. Short positions are 20.9% lower than yesterday and 17.5% weaker since last week. Open interest is 0.2% weaker than yesterday and 1.4% above its monthly average. The SSI is a contrarian indicator and signals more USDJPY losses.
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