Receive the Weekly Speculative Sentiment Index report via PDF via David’s e-mail distribution list.
USDJPY –A recent shift towards retail FX crowd buying acts as contrarian signal that the USDJPY may continue lower.
The ratio of long to short positions in the USDJPY stands at 1.87 as 65% of traders are long. Yesterday the ratio was 1.92; 66% of open positions were long. Long positions are 2.1% lower than yesterday and 20.2% above levels seen last week. Short positions are 0.3% higher than yesterday and 13.6% below levels seen last week. Open interest is 1.3% lower than yesterday and 3.2% 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.
See next currency section: AUDUSD - Australian Dollar Forecast Unclear
Written by David Rodriguez, Quantitative Strategist for DailyFX.com
Automate our SSI-based trading strategies via Mirror Trader free of charge
To receive the Speculative Sentiment Index and other reports from this author via e-mail, sign up for his distribution list via this link.
Contact David via
Twitter at http://www.twitter.com/DRodriguezFX
