Yen Remains in Long-term Uptrend
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 7.60 as a whopping 88% of traders are long. Said positioning is mostly unchanged since last week, and the heavily net-long USDJPY SSI gives us contrarian signal that the pair will maintain in its long-term downtrend.
How do we interpret the SSI? Watch an FXCM Expo Presentation that explains the SSI.
--- Written by David Rodriguez, Quantitative Strategist for DailyFX.com
To contact David, e-mail email@example.com
To be added to David’s e-mail distribution list for this and other reports, e-mail subject line “Distribution List” to firstname.lastname@example.org
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.