Yen Poised to Continue Rally
USDJPY – Trading crowds remain aggressively net-long the US Dollar against the Japanese Yen and have remained long since the pair traded near the 90.00 mark. Yet the pair has 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 9.21 as nearly 90% of traders are long. Yesterday, the ratio was at 5.54 as 85% of open positions were long. In detail, long positions are 20.2% higher than yesterday and 10.4% weaker since last week. Short positions are 27.7% lower than yesterday and 1.3% weaker since last week. The SSI is a contrarian indicator and signals further USDJPY losses.
How do we interpret the SSI? Watch an FXCM Expo Presentation that explains the SSI.
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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