US Dollar Forecast to Fall Further versus Japanese Yen
Why and how do we use IG Client Sentiment in trading? See our guide.
USDJPY: Retail trader data shows 72.5% of traders are net-long with the ratio of traders long to short at 2.64 to 1. In fact, traders have remained net-long since Jan 09 when USDJPY traded near 117.304; price has moved 5.4% lower since then. The number of traders net-long is 5.7% higher than yesterday and 1.1% higher from last week, while the number of traders net-short is 6.2% lower than yesterday and 10.2% 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.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.