US Dollar at Risk of Further Declines versus Yen
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USDJPY - The ratio of long to short positions in the USDJPY stands at 2.41 as 71% of traders are long. Yesterday the ratio was 2.14; 68% of open positions were long. Long positions are 7.8% higher than yesterday and 5.5% above levels seen last week. Short positions are 4.3% lower than yesterday and 3.3% below levels seen last week. Open interest is 4.0% higher than yesterday and 7.5% 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 and last week. The combination of current sentiment and recent changes gives a further bearish trading bias.
See next currency section:AUDUSD - Australian Dollar Forecast Remains Bullish
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.