USD/JPY: Trader Sentiment Remains Bearish As Price Approaches Yearly Highs
Retail Traders Increase Net-Shorts 10.1%
USDJPY: Retail trader data shows 41.6% of traders are net-long with the ratio of traders short to long at 1.4 to 1. In fact, traders have remained net-short since Jun 28 when USDJPY traded near 110.058; price has moved 2.6% higher since then. The number of traders net-long is 5.3% higher than yesterday and 1.0% lower from last week, while the number of traders net-short is 1.4% higher than yesterday and 10.1% higher from last week.
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USD/JPY Sentiment Provides A Mixed Bias
We typically take a contrarian view to crowd sentiment, and the fact traders are net-short suggests USDJPY prices may continue to rise. Positioning is less net-short than yesterday but more net-short from last week. The combination of current sentiment and recent changes gives us a further mixed USDJPY trading bias.
--- Written by Yayati Tanwar, DailyFX Research
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.