Yen Continues to Trade with Mixed Bias
Traders Remain Net-Long For 6 weeks
USDJPY: Retail trader data shows 53.1% of traders are net-long with the ratio of traders long to short at 1.13 to 1. In fact, traders have remained net-long since May 23 when USDJPY traded near 110.822; price has moved 1.0% lower since then. The number of traders net-long is 9.3% higher than yesterday and 14.0% higher from last week, while the number of traders net-short is 9.2% higher than yesterday and 18.0% higher 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 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 Abdullah AlAmoudi, DailyFX Research
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.