Japanese Yen Shows Strong Bullish Contrarian Bias
USDJPY: Retail trader data shows 46.2% of traders are net-long with the ratio of traders short to long at 1.17 to 1. The number of traders net-long is 4.3% lower than yesterday and 6.8% lower from last week, while the number of traders net-short is 11.0% higher than yesterday and 14.8% higher from last week.
We typically take a contrarian view to crowd sentiment, and the fact traders are net-short suggests USDJPY prices may continue to rise. Traders are further net-short than yesterday and last week, and the combination of current sentiment and recent changes gives us a stronger USDJPY-bullish contrarian trading bias.
--- Written by Dylan Jusino, DailyFX Research