Japanese Yen Eyes Gains versus the US Dollar
USDJPY - The ratio of long to short positions in the USDJPY stands at 2.28 as 70% of traders are long. Yesterday the ratio was 1.98; 66% of open positions were long. Long positions are 5.4% higher than yesterday and 6.2% below levels seen last week. Short positions are 8.5% lower than yesterday and 14.9% above levels seen last week. Open interest is 0.8% higher than yesterday and 7.4% 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 but moderated since last week. The combination of current sentiment and recent changes gives a further mixed trading bias.
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--- Written by Christopher Vecchio, Currency Strategist
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