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USDJPY: Retail trader data shows 68.1% of traders are net-long with the ratio of traders long to short at 2.14 to 1. In fact, traders have remained net-long since Dec 29 when USDJPY traded near 112.729; price has moved 6.0% lower since then. The number of traders net-long is 3.6% higher than yesterday and 8.6% lower from last week, while the number of traders net-short is 2.6% higher than yesterday and 2.6% 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. 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 Dylan Jusino, DailyFX Research
