US Dollar Remains a Buy versus Japanese Yen
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USDJPY - The ratio of long to short positions in the USDJPY stands at -1.73 as 37% of traders are long. Yesterday the ratio was -1.50; 40% of open positions were long. Long positions are 10.2% lower than yesterday and 10.5% below levels seen last week. Short positions are 3.7% higher than yesterday and 1.6% below levels seen last week. Open interest is 1.9% lower than yesterday and 5.1% 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.
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