Crowd Sentiment Points to USDJPY Weakness
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USDJPY - The ratio of long to short positions in the USDJPY stands at 2.26 as 69% of traders are long. Yesterday the ratio was 1.85; 65% of open positions were long. Long positions are 1.7% higher than yesterday and 11.7% below levels seen last week. Short positions are 16.4% lower than yesterday and 2.2% below levels seen last week. Open interest is 4.6% lower than yesterday and 13.2% 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 further net-long from yesterday but moderated since last week. The combination of current sentiment and recent changes gives a further mixed trading bias.
See next currency section: AUDUSD - Australian Dollar May Rally Further as Crowds Sell
Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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