Crowd Still Net-Long USD/JPY, but Outlook Less Certain
USDJPY - The ratio of long to short positions in the USDJPY stands at 1.08 as 52% of traders are long. Yesterday the ratio was 1.20; 55% of open positions were long. Long positions are 7.6% lower than yesterday and 33.8% below levels seen last week. Short positions are 2.9% higher than yesterday and 49.9% above levels seen last week. Open interest is 2.8% lower than yesterday and 11.9% 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.
--- Written by Christopher Vecchio, Currency Strategist
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