US Dollar Looks like a Sell versus Japanese Yen
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USDJPY– Retail FX traders remain net-long the US Dollar versus the Japanese Yen and have remained such with virtually no interruption through the past 12 months. The USD/JPY has fallen from ¥125 to lows near ¥105 through that stretch, and a contrarian view of crowd sentiment has kept us bearish throughout.
The same data shows 69 percent of open positions are currently long the USD/JPY—keeping our bearish bias intact. Indeed, total long positions have risen 23 percent in the past seven days while short positions have fallen 15 percent. We will continue to call for USD/JPY declines until we see a substantive turn in retail trader sentiment.
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.