Traders Remain Short the US Dollar versus the Yen – What’s Next?
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USDJPY - The ratio of long to short positions in the USDJPY stands at -1.57 as 39% of traders are long. Yesterday the ratio was -1.52; 40% of open positions were long. Long positions are 0.7% higher than yesterday and 2.2% below levels seen last week. Short positions are 4.2% higher than yesterday and 22.3% above levels seen last week. Open interest is 2.8% higher than yesterday and 13.8% above its monthly average.
We use our SSI as a contrarian indicator to price action, and the fact that the majority of traders are short gives signal that the USDJPY may continue higher. The trading crowd has grown further net-short from yesterday and last week. The combination of current sentiment and recent changes gives a further bullish trading bias.