Japanese Yen Sticks to Consolidation Pattern
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USDJPY – The ratio of long to short positions in the USDJPY stands at 1.72 as 63% of traders are long. Yesterday the ratio was 1.89; 65% of open positions were long. Long positions are 6.2% lower than yesterday and 8.7% below levels seen last week. Short positions are 3.1% higher than yesterday and 1.5% below levels seen last week. Open interest is 3.0% lower than yesterday and 23.8% below its monthly average. We use our SSI as a contrarian indicator to price action, and the fact that the majority of traders are long gives signal that the USDJPY may continue lower. The trading crowd has grown less net-long from yesterday and last week. The combination of current sentiment and recent changes gives a further mixed trading bias.
See next currency section: AUDUSD - Australian Dollar Poised for Further Losses
Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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