Build in US Dollar Buying Points to USDJPY Declines
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USDJPY –The ratio of long to short positions in the USDJPY stands at 2.72 as 73% of traders are long. Yesterday the ratio was 2.72; 73% of open positions were long. Long positions are 1.7% higher than yesterday and 28.0% above levels seen last week. Short positions are 1.9% higher than yesterday and 23.1% below levels seen last week. Open interest is 1.8% higher than yesterday and 5.8% above 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 but further long since last week. The combination of current sentiment and recent changes gives a further mixed trading bias.
See next currency section:AUDUSD - Australian Dollar at Cusp of Reversal
Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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