Yen Set to Fall against the Dollar Based on this
USDJPY: Retail trader data shows 48.8% of traders are net-long with the ratio of traders short to long at 1.05 to 1. The number of traders net-long is 8.0% lower than yesterday and 10.9% lower from last week, while the number of traders net-short is 7.2% lower than yesterday and 0.8% 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. Traders are further net-short than yesterday and last week, and the combination of current sentiment and recent changes gives us a stronger USDJPY-bullish contrarian trading bias.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.