USDJPY May Rise With Recent Shifts in Sentiment
Don't forget to check the free Bitcoin Trading Guide if you're new to cryptocurrencies!
USDJPY: Retail trader data shows 67.3% of traders are net-long with the ratio of traders long to short at 2.06 to 1. In fact, traders have remained net-long since Dec 29 when USDJPY traded near 113.533; price has moved 6.2% lower since then. The number of traders net-long is 2.6% lower than yesterday and 0.4% lower from last week, while the number of traders net-short is 0.9% higher than yesterday and 8.8% 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. Yet traders are less net-long than yesterday and compared with last week. Recent changes in sentiment warn that the current USDJPY price trend may soon reverse higher despite the fact traders remain net-long.
--- Written by Dylan Jusino, DailyFX Research
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.