USD/JPY: Net-Long Positions Trend Below 50% Prompting Bullish Signal
Net-Long Positions Continue To Trend Lower
USDJPY: Retail trader data shows 46.1% of traders are net-long with the ratio of traders short to long at 1.17 to 1. The number of traders net-long is 2.2% lower than yesterday and 5.2% lower from last week, while the number of traders net-short is 0.1% higher than yesterday and 9.7% higher from last week.
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USD/JPY Sentiment Shifts to Bullish Bias
We typically take a contrarian view to crowd sentiment, and the fact traders are net-short suggests USDJPY prices may continue to rise. Traders are further net-short than yesterday and last week, and the combination of current sentiment and recent changes gives us a stronger USDJPY-bullish contrarian trading bias.
--- Written by Jake Schoenleb, DailyFX Research
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.