USDJPY: Trades Off of 110 Resistance Level With Mixed Bias
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6.5% of Yen Short Positions Covered Since Last Week
USDJPY: Retail trader data shows 56.5% of traders are net-long with the ratio of traders long to short at 1.3 to 1. In fact, traders have remained net-long since Dec 29 when USDJPY traded near 112.306; price has moved 2.8% lower since then. The number of traders net-long is 2.6% lower than yesterday and 0.7% lower from last week, while the number of traders net-short is 1.0% higher than yesterday and 6.5% lower from last week.
USDJPY Trades With Mixed Bias
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 less net-long than yesterday but more 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
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.