The ’Crowd’ Buys US Dollar versus the Japanese Yen
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USDJPY - The ratio of long to short positions in the USDJPY stands at 2.27 as 69% of traders are long. Yesterday the ratio was 1.98; 66% of open positions were long. Long positions are 1.6% higher than yesterday and 16.1% above levels seen last week. Short positions are 11.3% lower than yesterday and 42.1% below levels seen last week. Open interest is 2.7% lower than yesterday and 5.7% 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.
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