US Dollar Likely to Fall even Further versus Japanese Yen
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USDJPY: Retail trader data shows 71.3% of traders are net-long with the ratio of traders long to short at 2.48 to 1. In fact, traders have remained net-long since Jul 18 when USDJPY traded near 113.359; price has moved 3.9% lower since then. The number of traders net-long is 12.5% higher than yesterday and 11.1% higher from last week, while the number of traders net-short is 24.6% higher than yesterday and 16.2% 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. Yet traders are less net-long than yesterday and compared with last week. Recent changes in sentiment warn that the current USDJPY price trend may soon reverse higher despite the fact traders remain net-long.
See next article in this week’s report: Gold Price - Looks Likely to Rally Further