Choppy USDJPY Price Action Makes Next Move Unclear
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USDJPY –The ratio of long to short positions in the USDJPY stands at 1.75 as 64% of traders are long. Yesterday the ratio was 1.90; 66% of open positions were long. Long positions are 7.5% lower than yesterday and 15.7% below levels seen last week. Short positions are 0.4% higher than yesterday and 16.4% above levels seen last week. Open interest is 4.8% 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. 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 Stands to Rally Further
Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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