Traders Buying USDJPY as it Sticks to Large Range
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USDJPY –The ratio of long to short positions in the USDJPY stands at 1.94 as 66% of traders are long. Yesterday the ratio was 2.09; 68% of open positions were long. Long positions are 3.4% higher than yesterday and 8.9% below levels seen last week. Short positions are 11.7% higher than yesterday and 23.7% above levels seen last week. Open interest is 6.0% higher than yesterday and 5.9% 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 and last week. The combination of current sentiment and recent changes gives a further mixed trading bias.
See next currency section:AUDUSD - Australian Dollar Fails to Rally Above Key Resistance
Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.