Risk of Brexit Doesn't Stop Crowd from Aggressively Shorting the Yen
USDJPY - The ratio of long to short positions in the USDJPY stands at 3.68 as 79% of traders are long. Yesterday the ratio was 3.44; 77% of open positions were long. Long positions are 2.6% lower than yesterday and 7.8% below levels seen last week. Short positions are 9.0% lower than yesterday and 10.4% below levels seen last week. Open interest is 4.1% lower than yesterday and 3.3% 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 further net-long from yesterday and last week. The combination of current sentiment and recent changes gives a further bearish trading bias.
--- Written by Christopher Vecchio, Currency Strategist
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