US Dollar’s Next Step versus Japanese Yen is Uncertain
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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 1.10; 52% of open positions were long. Long positions are 2.4% lower than yesterday and 0.0% above levels seen last week. Short positions are 0.4% lower than yesterday and 0.7% below levels seen last week. Open interest is 1.4% lower than yesterday and 26.0% 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 Forecast to Decline Further
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.