Yen Bullish Trading Bias Set Up By Bullish Trading Bias
USDJPY: Retail trader data shows 53.2% of traders are net-long with the ratio of traders long to short at 1.13 to 1. The percentage of traders net-long is now its highest since Sep 27 when USDJPY traded near 112.881. The number of traders net-long is 0.9% higher than yesterday and 2.3% higher from last week, while the number of traders net-short is 11.6% lower than yesterday and 23.1% 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.
--- Written by Dylan Jusino, DailyFX Research