USD/JPY Price Might Reverse Lower Based on Sentiment
Trader Sentiment is Balanced For USDJPY
USDJPY: Retail trader data shows 50.0% of traders are net-long with the ratio of traders short to long at 1.0 to 1. The number of traders net-long is 0.5% lower than yesterday and 5.6% higher from last week, while the number of traders net-short is 5.6% lower than yesterday and 6.8% lower from last week.
USDJPY Shifts to Bearish Signal
We typically take a contrarian view to crowd sentiment, and the fact traders are net-short suggests USDJPY prices may continue to rise. Yet traders are less net-short than yesterday and compared with last week. Recent changes in sentiment warn that the current USDJPY price trend may soon reverse lower despite the fact traders remain net-short.
--- Written by Abdullah AlAmoudi, DailyFX Research
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.