US Dollar Outlook Unclear versus Japanese Yen
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USDJPY - The ratio of long to short positions in the USDJPY stands at -1.20 as 45% of traders are long. Yesterday the ratio was -1.25; 44% of open positions were long. Long positions are 3.2% higher than yesterday and 10.9% above levels seen last week. Short positions are 0.6% lower than yesterday and 2.1% above levels seen last week. Open interest is 1.1% higher than yesterday and 3.7% 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 less net-short from yesterday and last week. The combination of current sentiment and recent changes gives a further mixed trading bias.
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