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 a massive 9.41 as nearly 90% of traders are long. Yesterday, the ratio was at 8.34 as 89% of open positions were long. In detail, long positions are 5.4% higher than yesterday and 19.3% stronger since last week. Short positions are 6.5% lower than yesterday and 27.3% weaker since last week. The SSI is a contrarian indicator and has called for USDJPY losses since the pair traded near 90.00. Yet the shorter-term picture is less clear on recent range trading.
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--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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