Retail FX Traders Do Well as they Buy USDJPY Gains
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USDJPY–Retail traders remain long the US Dollar versus the Japanese Yen. We typically use our SSI as a contrarian indicator to price action, and we would normally interpret this as signal that the USDJPY may continue lower. Yet it’s obvious that the majority of traders have done well buying the Dollar versus the Yen, and there’s little reason to expect this dynamic will change through the foreseeable future.
The ratio of long to short positions in the USDJPY stands at 1.72 as 63% of traders are long. Yesterday the ratio was 1.61; 62% of open positions were long. Long positions are 3.5% lower than yesterday and 15.5% above levels seen last week. Short positions are 9.4% lower than yesterday and 4.1% below levels seen last week. Open interest is 5.8% lower than yesterday and 5.6% above its monthly average.
See next currency section: AUDUSD - Australian Dollar May have Set Short-term Bottom
Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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