US Dollar Remains a Sell versus Yen

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USDJPY: Retail trader data shows 73.5% of traders are net-long with the ratio of traders long to short at 2.77 to 1. In fact, traders have remained net-long since Jan 09 when USDJPY traded near 117.304; price has moved 7.0% lower since then. The number of traders net-long is 2.0% lower than yesterday and 6.2% higher from last week, while the number of traders net-short is 15.1% higher than yesterday and 2.7% higher 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. Positioning is less net-long than yesterday but more net-long from last week. The combination of current sentiment and recent changes gives us a further mixed USDJPY trading bias.