Yen Eyes Fresh Record Highs
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. In fact, our SSI ratio stands at a whopping 13.79 as approximately 93 percent of retail traders are currently long.
In fact, retail traders continue to buy into USDJPY weakness; long interest is 6.1% higher than yesterday and a sizeable 65.2% above a week ago. The risk of Bank of Japan and Ministry of Finance intervention in the USDJPY continues to grow as the pair trades at record-lows. Yet the overwhelming trend and extremely one-sided sentiment favors further short-term declines.
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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