USDJPY: Likely Break Above 110.10 with Bullish Sentiment
Short Trades Fall by 22% Overnight
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. The number of traders net-long is 8.9% lower than yesterday and 9.6% lower from last week, while the number of traders net-short is 22.6% lower than yesterday and 15.7% lower from last week.
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Shift in Sentiment Likley with 56% of Traders Net-Long
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
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.