Dollar May Lose Further versus Japanese Yen
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USDJPY - The ratio of long to short positions in the USDJPY stands at 1.55 as 61% of traders are long. Yesterday the ratio was 1.32; 57% of open positions were long. Long positions are 6.2% higher than yesterday and 16.6% above levels seen last week. Short positions are 9.9% lower than yesterday and 10.4% below levels seen last week. Open interest is 0.8% lower than yesterday and 2.0% 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 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 Outlook Shifts on Sentiment Change
Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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