Japanese Yen Remains Favorable versus US Dollar
USDJPY - The ratio of long to short positions in the USDJPY stands at 1.94 as 66% of traders are long. Yesterday the ratio was 2.04; 67% of open positions were long. Long positions are 8.5% lower than yesterday and 11.6% below levels seen last week. Short positions are 3.7% lower than yesterday and 1.1% above levels seen last week. Open interest is 6.9% lower than yesterday and 8.0% 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.
How do we interpret the SSI? Watch an FXCM Expo Presentation that explains the SSI.
--- Written by Christopher Vecchio, Currency Strategist
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