US Dollar Outlook Clouded versus Japanese Yen
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USDJPY -The ratio of long to short positions in the USDJPY stands at 1.22 as 55% of traders are long. Yesterday the ratio was 1.40; 58% of open positions were long. Long positions are 8.5% lower than yesterday and 8.2% below levels seen last week. Short positions are 5.1% higher than yesterday and 11.9% below levels seen last week. Open interest is 2.8% lower than yesterday and 5.2% 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 Likely to Continue Lower
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.