US Dollar Likely to Continue Lower versus Japanese Yen
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USDJPY: Retail trader data shows 61.0% of traders are net-long with the ratio of traders long to short at 1.56 to 1. In fact, traders have remained net-long since May 17 when USDJPY traded near 112.807; price has moved 1.6% lower since then. The number of traders net-long is 4.8% higher than yesterday and 2.9% higher from last week, while the number of traders net-short is 2.0% higher than yesterday and 12.9% 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.
See next article in this week’s report: Spot Gold - Gold Price Rally Likely to Continue until this Changes
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