US Dollar Forecast Shifts Rapidly versus Japanese Yen
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USDJPY: Retail trader data shows 63.6% of traders are net-long with the ratio of traders long to short at 1.75 to 1. In fact, traders have remained net-long since May 17 when USDJPY traded near 110.938; price has moved 1.0% higher since then. The number of traders net-long is 14.2% higher than yesterday and 27.4% higher from last week, while the number of traders net-short is 13.7% lower than yesterday and 26.9% 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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