Japanese Yen Uptrend Intact Despite Intervention
USDJPY – Ministry of Finance intervention in the Japanese Yen has forced significant shifts in forex crowd sentiment, but crowds remain heavily net-long the USDJPY and our overall sentiment-based bias calls for further losses.
The ratio of long to short positions in the USDJPY stands at 2.98 as nearly 75% of traders are long. Yesterday, the ratio was at a massive 8.59 as 90% of open positions were long. In detail, long positions are 46.8% lower than yesterday and 44.2% weaker since last week. Short positions are 53.2% higher than yesterday and 59.7% stronger since last week.
Clearly the sudden sentiment shift warns that crowd sentiment could turn around. Yet as things stand, strongly one-sided long positions keep our sentiment-based bias in favor of further USDJPY declines.
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