US Dollar Clings to Key Support versus Japanese Yen
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USDJPY - The ratio of long to short positions in the USDJPY stands at 1.46 as 59% of traders are long. Yesterday the ratio was 1.34; 57% of open positions were long. Long positions are 3.7% higher than yesterday and 6.9% below levels seen last week. Short positions are 4.8% lower than yesterday and 1.4% below levels seen last week. 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 but moderated since last week. The combination of current sentiment and recent changes gives a further mixed trading bias, and whether the pair holds key support at ¥123.50.
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.