Yen Mixed as Traders Cover Short Positions
USDJPY: Retail trader data shows 47.8% of traders are net-long with the ratio of traders short to long at 1.09 to 1. The number of traders net-long is 2.4% higher than yesterday and 3.5% higher from last week, while the number of traders net-short is 8.0% higher than yesterday and 0.7% higher from last week.
We typically take a contrarian view to crowd sentiment, and the fact traders are net-short suggests USDJPY prices may continue to rise. Positioning is more net-short than yesterday but less net-short from last week. The combination of current sentiment and recent changes gives us a further mixed USDJPY trading bias.