US Dollar Outlook Unclear versus Japanese Yen
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USDJPY– The ratio of long to short positions in the USDJPY stands at 1.27 as 56% of traders are long. Yesterday the ratio was 1.42; 59% of open positions were long. Long positions are 1.0% higher than yesterday and 1.6% below levels seen last week. Short positions are 12.3% higher than yesterday and 13.2% above 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 less net-long from yesterday and last week. The combination of current sentiment and recent changes gives a further mixed trading bias.
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