Yen Rally May Be Fueled by Bullish Trading Bias
USDJPY: Retail trader data shows 45.6% of traders are net-long with the ratio of traders short to long at 1.19 to 1. The number of traders net-long is 9.8% lower than yesterday and 11.4% lower from last week, while the number of traders net-short is 6.1% higher than yesterday and 4.2% 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
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