Japanese Yen Rally May be Overdone, but Trend Remains Clear
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USDJPY: Retail trader data shows 63.9% of traders are net-long with the ratio of traders long to short at 1.77 to 1. In fact, traders have remained net-long since May 17 when USDJPY traded near 113.298; price has moved 3.1% lower since then. The number of traders net-long is 13.4% higher than yesterday and 1.0% higher from last week, while the number of traders net-short is 9.1% higher than yesterday and 6.2% 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 more net-long than yesterday but less net-long from last week. The combination of current sentiment and recent changes gives us a further mixed USDJPY trading bias.
See next article in this week’s report: Spot Gold - Gold Price Outlook Unclear until this Changes
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