Dollar Remains a Sell versus the Japanese Yen
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USDJPY: Retail trader data shows 68.8% of traders are net-long with the ratio of traders long to short at 2.21 to 1. In fact, traders have remained net-long since Jul 18 when USDJPY traded near 113.307; price has moved 2.7% lower since then. The number of traders net-long is 2.5% higher than yesterday and 13.9% lower from last week, while the number of traders net-short is 15.6% lower than yesterday and 20.4% 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: Gold Price - Outlook Mixed Despite Recent Gold Rallies
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