USD/JPY Bias Turns Neutral Ahead of NFPs on Friday
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USDJPY: Retail trader data shows 52.7% of traders are net-long with the ratio of traders long to short at 1.11 to 1. The number of traders net-long is 7.2% higher than yesterday and 1.2% higher from last week, while the number of traders net-short is 6.9% lower than yesterday and 6.0% 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.
--- Written by Christopher Vecchio, CFA, Senior Currency Strategist
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