US Dollar Outlook Turns Bearish versus Japanese Yen
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USDJPY: Retail trader data shows 66.7% of traders are net-long with the ratio of traders long to short at 2.01 to 1. In fact, traders have remained net-long since Jan 09 when USDJPY traded near 116.998; price has moved 2.0% lower since then. The percentage of traders net-long is now its highest since Feb 28 when USDJPY traded near 113.09. The number of traders net-long is 3.1% higher than yesterday and 24.6% higher from last week, while the number of traders net-short is 6.3% lower than yesterday and 0.7% lower from last week.
We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests USDJPY prices may continue to fall. Traders are further net-long than yesterday and last week, and the combination of current sentiment and recent changes gives us a stronger USDJPY-bearish contrarian trading bias.
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