Yen Poised to Continue Rally
USDJPY – Trading crowds remain aggressively net-long the US Dollar against the Japanese Yen, but the pair seemingly refused to break to fresh lows. Our subsequent bias is cautiously bearish—we’ll need to see fresh conviction to the downside before taking a more aggressive stance.
The ratio of long to short positions in the USDJPY stands at 4.58 as nearly 82% of traders are long. Yesterday, the ratio was at 5.74 as 85% of open positions were long. In detail, long positions are 6.5% lower than yesterday and 10.5% weaker since last week. Short positions are 17.0% higher than yesterday and 30.1% stronger since last week. Overall sentiment favors USDJPY weakness, but the pair has shown little willingness to break to fresh lows.
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