Sharp Jump Forces Notable Shift in USD/JPY Sentiment
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USDJPY - The ratio of long to short positions in the USDJPY stands at 1.79 as 64% of traders are long. Yesterday the ratio was 2.27; 69% of open positions were long. Long positions are 20.0% lower than yesterday and 7.8% below levels seen last week. Short positions are 1.5% higher than yesterday and 36.4% below levels seen last week. Open interest is 13.4% lower than yesterday and 16.1% 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 less net-long from yesterday but further long since last week. The combination of current sentiment and recent changes gives a further mixed trading bias.
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